Shashi Prakash Tiwari (39 Points)
14 May 2019
Durga Prasad
(CA Final)
(36 Points)
Replied 14 May 2019
Nandini H Gupta
(Chartered Accountant )
(369 Points)
Replied 14 May 2019
ITC under 17(5) of CGST: input tax credit shall not be available in respect of health services EXCEPT where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply.
Denial of credit on the medical dispensary services
CA Sunil
(Internal Auditor)
(204 Points)
Replied 15 May 2019
According to me ITC is available, if you read Section 17(5) the term "Health Service" is included in the blocked credit section.
However it is also provided in the proviso to the section, that ITC would be admissible where it is obligatory for an employer to provide such supplies to its employees under any law for the time being in force.
Under factories and various State Shops and Establishment Act it is obligatory for employer to have Canteen, Clinic / dispensary hence ITC on medicine should be allowed.
Kunal Mittal
(FINANCE OFFICER)
(580 Points)
Replied 15 May 2019
the word health service is used. it is to be seen that whether medicine comes in the purview of health services.
Its better not to take the itc or consult you area commissioner.
blind balance
(6 Points)
Replied 22 March 2021
I would also recommend you to take a look at the UK Meds online pharmacy. I found out about it last year. Since then I buy all the needed medications and health supplements there. I was pleasantly surprised by the prices there and the free delivery option. I think everyone should know about it.
Suresh Kumar
(Account)
(403 Points)
Replied 24 September 2023
Can be availed subject to Section 17(5) of CGST Act
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