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2019 (10) TMI 1019 - AAR - GSTExemption from GST - health care service provider - Whether applicant being a health care service provider, are exempted from tax or not? - HELD THAT:- The transaction of the applicant is examined and it is seen that the applicant has entered into a contract with the contractee (hospital) for providing diagnostic services in their premises for the patients referred to by the hospital. The patients are liable to pay charges on that account to the Hospital and the applicant has nothing to do with it. The applicant only scrutinizes whether the payment is done or not and once the payment is done to the Hospital as per their schedule of charges, they carry out the diagnostic tests on the patients. The service thus provided is to the contractee and not to the patients. The consideration is also payable by the contractee to the applicant and hence the contractee is the recipient of the services by virtue of clause (93) of section 2 of the CGST Act, 2017. Since, the contractee is liable to pay the consideration involved in the supply of services to the patients, the contractee would be deemed to the recipient of services and it does not matter whether the contractee collects the amount from the patient or not - the services by way of diagnosis for illness, deformity-, abnormality or pregnancy are covered under “health care services”. Whether the applicant is a “clinical establishment” as contemplated in Entry No.74 of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017? - HELD THAT:- Since the applicant is offering diagnostic services, they would be covered under the term “clinical establishment” for the purposes of entry no. 74 of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017. The service provided by the applicant would be covered under “Services by way of health care services by a clinical establishment” and hence covered under entry 74 of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 and hence is exempted from GST. It is pertinent to note that there is no condition relating to the recipient of these services in the said entry.
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