The Medical Store run by the Charitable Trust would require GST Registration, and that the Medical Store providing medicines even if supplied at lower rate would amount to supply of goods. Any trade or commerce whether or not for a pecuniary benefit, would be included in the term ‘business’ as defined under Section 2(17) of CGST Act.
Section 2(17) of the CGST Act, 2017 — Business –The petitioner challenged the impugned order dated 28.01.2021 passed by the Gujarat Appellate Authority for Advance Ruling, whereby it has confirmed the Advance Ruling dated 19.05.2020. The petitioner is a registered charitable Trust set up with various objectives basically and essentially of undertaking eye and research activities. The petitioner sought an advance ruling as to whether GST Registration is required for medical store run by Charitable Trust; and Medical store providing medicines at a lower rate amounts to supply of goods. The AAR held that the petitioner Trust was required to obtain GST Registration for the medical store run by the Trust and that the medical store providing medicines at a lower rate amounted to supply of goods. Being aggrieved, the petitioner preferred an Appeal before the GAAAR, which vide impugned order dated 28.01.2021 dismissed the said Appeal. The petitioner’s counsel submitted that the activities carried on by the petitioner Trust by running a medical store could not be said to be a “business” within the meaning of Section 2(17) of the Act, inasmuch such activities can neither be said to be a trade or commerce nor for any pecuniary benefit. The court observed that any trade or commerce whether or not for a pecuniary benefit, would be included in the term ‘business’ as defined under Section 2(17) of the said Act and it is immaterial whether such a trade or commerce or such activity is for pecuniary benefit or not. The Court does not find any illegality or infirmity in the said orders passed by the authorities.
Held that:- The Hon’ble High Court dismissed the petition being devoid of merits.
The Medical Store run by the Charitable Trust would require GST Registration, and that the Medical Store providing medicines even if supplied at lower rate would amount to supply of goods. Any trade or commerce whether or not for a pecuniary benefit, would be included in the term ‘business’ as defined under Section 2(17) of CGST Act.
Section 2(17) of the CGST Act, 2017 — Business –The petitioner challenged the impugned order dated 28.01.2021 passed by the Gujarat Appellate Authority for Advance Ruling, whereby it has confirmed the Advance Ruling dated 19.05.2020. The petitioner is a registered charitable Trust set up with various objectives basically and essentially of undertaking eye and research activities. The petitioner sought an advance ruling as to whether GST Registration is required for medical store run by Charitable Trust; and Medical store providing medicines at a lower rate amounts to supply of goods. The AAR held that the petitioner Trust was required to obtain GST Registration for the medical store run by the Trust and that the medical store providing medicines at a lower rate amounted to supply of goods. Being aggrieved, the petitioner preferred an Appeal before the GAAAR, which vide impugned order dated 28.01.2021 dismissed the said Appeal. The petitioner’s counsel submitted that the activities carried on by the petitioner Trust by running a medical store could not be said to be a “business” within the meaning of Section 2(17) of the Act, inasmuch such activities can neither be said to be a trade or commerce nor for any pecuniary benefit. The court observed that any trade or commerce whether or not for a pecuniary benefit, would be included in the term ‘business’ as defined under Section 2(17) of the said Act and it is immaterial whether such a trade or commerce or such activity is for pecuniary benefit or not. The Court does not find any illegality or infirmity in the said orders passed by the authorities.
Held that:- The Hon’ble High Court dismissed the petition being devoid of merits.