GST ON HEALTH CARE SERVICE, Goods and Services Tax - GST

[satbir singhwahi]

PRIVATE LIMITED COMPANY , PROVIDING HEALTH CARE SERVICE LIKE NURSING STAFF, PATIENT BEDS, OXYGEN CYLINDERS , VENTILATORS , OTHER MEDICAL EQUIPMENTS AS SERVICE TO PATIENTS.WHETHER RECEIPTS SUBJECT TO GST.

Posts / Replies

[KASTURI SETHI]

These services are exempted from GST. Whether health care services provided by private hospital or Govt. hospital these are exempted. See Board's Circular No.32/6/18-CGST dated 12.2.18 (Serial No.5) read with Notification No.12/17-CT(Rate) dated 28.6.17 (Serial No.74).All kinds of services mentioned by you are covered under Health Care Services and exempted from GST.

[praveenkumar mekalacheruvu]

As per notification 2/2017, the health services provided by the medical practitioner, clinical establishments, paramedics is exempted under GST but not by the Private Limited Company.

As per Section 17(5), Itc is disallowed on the health services

[KASTURI SETHI]

First of all there is a world of difference between "health services"and "health care services". Health care includes fitness etc whereas the latter means treatment. If health care services are exempted the question of ITC does not arise. Pl. go through the definition of "Clinical Establishment" as per Board's Flyer No. 39 dated 1.1.18 as follows:

The clinical establishment, as per clause (s), means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases.

[KASTURI SETHI]

The phrase,'a hospital' means any hospital. It is not 'the hospital' There is a lot of difference between 'a' and 'the'. Emphasis is supplied on 'a'. A hospital does not distingiush between Govt. hospital or private ltd hospital or limited. Most of the reputed pvt. hospitals are run by limited companies or pvt. limited companies. The purpose behind exemption is not to burden the patient with tax whether the patient gets treatment from private hospital or Govt. hospital. Cosmetic surgery, gymnasium etc. are excluded from the category of health care services. for the purpose of exemption from GST. Hence exemption available as asked in the query above by the querist.