GST Appellate Tribunal, Hyderabad
Boilla Venkataramana Reddy v. Shivenari Canteen Services
APL NO. 149 (HYD.) OF 2026
The ruling in brief
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
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
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
Provisions considered
Section 9, read with Section 8, of Central Goods and Services Tax Act, 2017/Telangana Goods and Services Tax Act, 2017; Sections 74, read with sections 73 and 75, of Central Goods and Services Tax Act, 2017/Telangana Goods and Services Tax Act, 2017; Section 15 of Central Goods and Services Tax Act, 2017/ Telangana Goods and Services Tax Act, 2017 - Rule 35 of Central Goods and Services Tax Rules, 2017/Telangana Goods and Services Tax Rules, 2017
This summary is for general information and is not legal advice. Read the full decision and the applicable law before relying on it.