TMI Blog2020 (9) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... re covered under health care services . Clinical establishment or not - HELD THAT:- In the instant case the applicant established a medical diagnostic laboratory to carry out diagnostic or investigative services of diseases. Thus the applicant qualities to be a clinical establishment. Exempt service or not - HELD THAT:- The services provided by the applicant are covered under clause (a) of Entry no. 74 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and hence is exempt from tax under the CGST Act 2017. Similarly, they are also exempted from tax under the KGST Act, 2017 and also under the Integrated Goods and Services Tax Act, 2017. The applicant is involved in taxable as well as exempted supplies. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and IGST Act. 2. The applicant is a proprietary concern having brand name of Bangalore Medical System and registered under the provisions of the Goods and Services Act, 2017. They are into supply of various reagents/ medical consumables (goods) in addition to provision of diagnostic services. The applicant have been Molecular Diagnostic services by M/s. Kidwai Medical Institute of Oncology, Bengaluru, a Karnataka Government hospital. They have been allotted around 5000 sq. ft. of room space to establish set up a complete Molecular Diagnostic Laboratory. The Lab would be a complete clean room which would be built with PUF panels and Air Handling Units, Lab's furniture and power backup, equipped with all the latest technology ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : 5.1 The applicant established a full fledged laboratory in the premises of the Kidwai Memorial Institute of Oncology and provides the service of diagnostic testing on the samples sent by the hospital. They charge the hospital for the services rendered. 5.2 The applicant claims that the services being provided to the Institute, which is a hospital, are exempted from tax under the CGST / KGST / IGST Act 2017. Further a lot of fixed assets in the form of instruments, furnitures fixtures purchased and have been capitalized in the books of accounts, thus they are capital goods hence applicant is eligible to claim input tax credit on the inward supply of such capital goods. 6. DISCUSSION FINDINGS 6.1 We have considered the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services is defined in clause (zg) of paragraph 2 of the Notification supra and reads as under: (zg) health care services means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma; In the instant case the services provided by the applicant are by way of diagnosis of an illness and hence the same ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplies including zero rated supplies and reads as under: (2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplied under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies. Therefore the applicant need to restrict the credit to the amount attributable to taxable supplies including zero rated supplies in the case of both capital goods as well as reagents/consumables or drugs. Further if the applicant claims depreciation on the tax co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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