Question ID : 40479

PAYMENT OF GST ON REVERSE CHARGE BASIS

Hospital providing medical facilities has registered to GST as it has a pharmacy which caters to general public. Payment of GST under reverse charge was applicable for purchases from unregistered dealers from 1-07-2017 to 12-10-2017. The services provided by hospital are exempt except sales made by the pharmacy. Does the payment of GST under reverse charge will be applicable on all the purchases made by the hospital from unregistered dealers during the period or the same will be restricted to pharmacy purchases.

Answer ID : 80263

The liability for procurements from unregistered persons was based on the registration and not on the business for which such procurements were used. Thereby such liability existed even for the health care services. However, there is a view that the manner in which amendment was carried out to the notification giving exemption for such liability (Rs. 5k per day), it could be said that no liability exists now if missed to pay earlier. Based on the amount involved and the risk apetite a decision can be taken in this regard regarding payment of tax.

Answer ID : 80264

RCM Stands applicable as the Hospital was registered during the period.

---