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GST Council extends last date for migrated taxpayers to surrender registration upto March 31, 2018 + reduces penalty for late filing of GSTRs + decides to amend e-Way Bill rulesGST Council reduces tax rate from 28% to 18% on used motor vehicles + from 18% to 12% on sugar boiled confectionary, drinking water packed in 20 litre bottles, bio-diesel and bio-pesticides + from 18% to 5% on components required for satellite launch + LPG supplied for domestic consumption + from 12% to 5% on velvet fabric + from 3% to 0.25% on diamonds & precious stonesGST Council decides to exempt RTI-related services + reduces rate on construction of metro projects to 12% + 5% without ITC on housekeeping service through ECO + 5% rate on tailoring service + 18% rate now on entry ticket to water parks or theme parksGST on Services - ITC allowed to tour operators in same line of business + hikes exemption limit to Rs 7500 per month for Resident Welfare Members + exempts legal services provided to Governments & Govt entities + Rate reduced on transportation of petroleum products to 5% + Rate on job work services to leather and footwear reduced to 5% + exempts transport service provided to educational institutionsGST Council shifts focus on anti-evasion measures; Tax rates reduced on 29 goods & 53 ServicesGST Council decides to divide Rs 35000 Crore IGST collections between Centre & States, provisionally17 lakh Composition taxpayers paid only about Rs 307 Crore; Council expresses disappointmentLegislative changes - Council receives demand to introduce Sec 9(4) only for Composition taxpayersGST Council accepts Fitment Committee recommendations to reduce rates on 29 goods + 53 services; New rates to come into force from Jan 25GST Council accepts Sarna Committee report on handicraft items; Fitment Committee to decide tariff for 40 such itemsGST Council finally decides to stop at uploading of Sale Invoices in GSTR-3B till alternative is worked out and approved at next meeting through video conferencing + e-Way Bill - 15 States to roll out intra-State system on Feb 1, 2018SC terms States’ ban on Padmavat illegal after certification by Central BoardFinancial Year should roll out on Jan 1 rather than on April 1: Sushil ModiHyderabad DRI seizes Saudi & Omni Riyals worth Rs 1 Crore from pax heading for DubaiBihar CM wants Jaitley to hike Sec 80C limit to Sec 2 lakh + general exemption limit to Rs 3 lakhCentre to release Rs 1000 Cr more to AP Govt for its Amaravati projectTripura to go to polls on Feb 18; Nagaland + Meghalaya on Fe 27: Election CommissionGST Council is quite sensitive to exporters' problems, says Vice PresidentJaitley holds Pre-Budget talks with State FMs before Council MeetCBEC carries out more amendments in AEO ProgrammeSC declines to entertain petition seeking stay on media coverage of Apex Court Judges's rowADD on Metronidazole imported from PR China - Notfn 40/2012 rescinded - refund to be granted to importers who paid ADD on or after 29.08.2017 but did not pass on burden - Delhi HC in Aarti Drugs 2017-TIOL-1775-HC-DEL-Cus refersRebooting of GST - A TIOL word of caution for the CouncilST - Petitioner cannot challenge one part of order-in-original before High Court and another portion before CESTAT: HCI-T - Fees charged by trade regulatory body for registration of domain names are not taxable as 'commercial receipts': HCCX - CENVAT credit is admissible to extent insurance cover relates to employees for whom it is mandatory to provide such cover: CESTATI-T - Fees paid by cellular companies for acquring 3G band license, if capitalized as 'intangible asset', will be eligible for depreciation: ITATGST for 'Outdoor catering' should be reduced; No GST to be levied on Sale of Motorcars to employees after useGovt streamlines hotel classification guidelinesGovt hikes retirement age of Ayush doctors & civilian docs of Armed Forces to 65Direct tax collections peak at Rs 6.9 lakh cr after refund of Rs 1.2 lakh cr
I-T - Mere alteration in their MoA which did not alter basic purpose of providing medical relief, is no ground to deny exemption to hospitals: ITAT

By TIOL News Service

NEW DELHI, JAN 02, 2018: THE ISSUE BEFORE THE TRIBUNAL IS - Whether receipt of fee or charges for services rendered by a hospital, can be a ground to conclude that such hospital is engaged in trade & commerce with a profit earning motive. NO IS THE VERDICT.

Facts of the case:

The assessee, a charitable society registered u/s 12AA(1), is running a hospital in Old Delhi, which provides medical treatment, pathological tests & conducts surgeries, at very subsidised costs for the benefit of the poor, destitute and economically weaker sections of society. The assessee did not receive any donations and the major source of its income was fees collected from patients. During relevant A.Y, scrutiny assessments were conducted on completion of which, exemption u/s 11(1) was denied to the assessee by invoking provisions of Section 2(15), on grounds that the assessee was running the hospital with intent of earning profit. Subsequently, the registration u/s 12AA(1) was also cancelled by the DIT(Exemption). Such cancellation of registration was overturned by the Tribunal, and the Departmental appeal against such order was dismissed by the High Court.

The assessee also sought exemption u/s 10(23C) which was denied by the Revenue but later allowed by the High Court. For the succeeding AY, the AO also denied exemption u/s 11(1) on grounds that the assessee was not performing any charitable activities. Later, the CIT(A) allowed the assessee's appeal against such order.

Tribunal held that,

++ it is is submitted that in earlier A.Ys, the Exemption was granted by the Department which was taken into cognizance by the CIT(A) in his order. There is no need to interfere with the order of the CIT(A). As per the decision in assessee's own case passed by the ITAT which was confirmed by the High Court, the issue is squarely covered in favour of the assessee. In the said decision, on the question of alteration in Memorandum of Association and communication to the Revenue authorities, the Tribunal has examined the changes/amendments and held that these were minor in nature and did not detract or alter the main/basic purpose which was to provide medical relief. Thus, there was no change in the object and purpose of the assessee. The CIT(A) has rightly held that mere receipt of fee or charge cannot be said that the assessee is involved in any trade, commerce or business.

(See 2018-TIOL-11-ITAT-DEL)