In A.R.Com/02/2023 -AAR- Telangana AAR rules supply of ambulance to Tripura Government attracts 28% IGST
Members S.V. Kasi Visweswara Rao, Additional Commissioner (State Tax) & Sahil Inamdar, (I.R.S.) Additional Commissioner (Central Tax) [03-04-2023]

Read Order: In Re: v. M/s. Raminfo Limited

LE Correspondent

New Delhi, May 6, 2023: The Telangana Authority for Advance Rulings has ruled that the transaction of supply of ambulance to Tripura Government attracts IGST, being an inter-state supply and the tax rate applicable will be 28%.

The applicant, M/s. Raminfo Limited, had sought clarification on the provisions related to a new business opportunity involving ambulances, for providing health services. They intended to purchase Maruti Suzuki EECO vehicles and modify them to enable them to be used as mobile common service centers, which will be supplied to the end-user/customer. With respect to this, they sought clarification on the classification of goods or services, the applicable GST rate, the applicability of notifications, the determination of liability to pay tax, and the admissibility of Input Tax Credit for the purchase of vehicles.

The Authority also observed that the Input tax credit on purchase of such vehicles, which were meant to be modified into ambulances in workshop at Hyderabad, to make further supplies to Tripura Government, would be admissible, provided the applicant fulfils the conditions for availment of ITC as detailed in provisions of section 16 of CGST Act, 2017.