Liability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2018 Dear sir i had one query a BHMS professional we are providing clinical research to hospital and pharma company taking assignment from pharma company and perform research activity at hospital so GST is applicable at My service / second thing is any GST liablility on hospital end or on Pharma company ? my present Turn over is 12 lakh might be reached at 60 lakh up to march give guidance thank you

Rajesh Kumar

Rajesh Kumar (Expert)
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15 September 2018 You are supplying services to the person who is paying you. If the pharma company is paying, supply is to pharma company; if hospital is paying, supply is to hospital. If both are paying, part of supply is to both. The principle was developed service tax case of Paul Merchants, a larger bench CESTAT decision. The principle has been incorporated in GST law legislatively.
As per Section 2(93) of the Central Goods and Services Tax (CGST) Act, 2017, unless the context otherwise requires, the term “recipient” of supply of goods or services or both, means—
(a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration;
(b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and
(c) where no consideration is payable for the supply of a service, the person to whom the service is rendered,
and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied.