i am a consulatant and i give my services to a hospital. i raise a bill plus gst to the hospital. can the hospital take itc on it?
palak ahuja Asked question November 17, 2020
In case the hospital is fully engaged in exempt supplies i.e. health care services , ITC cannot be availed by it. However in case hospital is engaged in taxable supplies also like cosmetic surgery, sale of medicines and your consultancy is directly related to such taxable supply, 100% ITC can be availed. In case consultancy services is common to taxable and exempt supply for hospital, pro rata credit can be availed as per Rule 42 of the CGST Rules.
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Frah Saeed Changed status to publish November 17, 2020