GSTAT Hyderabad
Boilla Venkataramana Reddy v. Shivenari Canteen Services
Where outsourced caterer supplied food to in-patients within a hospital under contract, and only one supply, namely food, was made to hospital and not as part of composite healthcare supply, GST was leviable on such supply, as composite supply test failed and CBIC Circular supporting exemption applied only to supplies directly by healthcare provider and not outsourced caterer GST: Where caterer did not pay tax on in-patient food supplies based on an incorrect understanding of a Board Circular and no deliberate non-payment was established, invocation of section 74 was unsustainable, and dropping of penalty further negated mala fide intent, thus proceedings were to be treated under section 73 with proper re-determination of tax, interest and penalties GST: Where caterer supplied food to in-patients as per agreement with invoices showing no separate GST tax and department did not allege collection of tax above invoice value, invoice value was to be treated inclusive of tax, requiring application of cum-tax valuation under Rule 35, and tax liability was to be recomputed accordingly, ensuring no excess collection beyond statutory due