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TMI Blog2023 (3) TMI 1318X X X X Extracts X X X X X X X X Extracts X X X X ..... ing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. Proviso with reference to the Section 98(2) of CGST Act, 2017 slates that where the questions raised in the application is already pending or decided in any proceedings in the case of the applicant under any provision of this Act, the application may be rejected by the Advance Ruling Authority after providing an opportunity of being heard to the applicant. In the present case, the applicant has undertaken in form ARA-01 that the issue is neither pending nor decided in any proceedings under any of the provisions of the Act. The applicant has generated CPIN with reference to the applicable fee of Rs. 10,000/- under both the Acts. As the applicant is not registered under the HGST Act, 2017 so he could not raise DRC-03. The matter is being examined on merits by the authority. Statement of facts as per ARA-01:- M/s ARPK Healthcare Private Limited is providing Health Care Services as defined in clause (zg) of the notification number 12/2017 dt. 28.06.2017. Similarly, M/s Asian Institute of Medical Science (a unit of Bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. (c) Para (k) "authorized medical practitioner" means a medical practitioner registered with any of the councils of the recognized system of medicines established or recognized by law in India and includes a medical professional having the requisite qualification to practice in any recognized system of medicines in India as per any law for the time being in force, The circular No. 32/06/2018-GST New Delhi, 12th February 2018 was issued for clarifications regarding GST in respect of certain services including levy of GST on Healthcare Services. The relevant portion of above circular is as: Sr. No. Issue Clarification 5 Is GST leviable in following cases: (1) Hospitals hire senior doctors/ consultants/technicians independently, without any contract of such persons with the patient, and pay them consultancy dated 28.06.2017 as amended refers], charges, without there being any employer relationship. Will consultancy charges be exempt from GST? Will revenue take a stand that they are providing servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ployed by M/s ARPK is towards the healthcare services provided by the M/s Asian and M/s ARPK to the patients and is exempt. The applicant has also referred to ruling pronounced by the authority of Karnataka state on 30th September, 2019 in the case of Matrix Imaging Solutions India Private Limited [Advance Ruling No. KAR ADRG 105/2019, dated September 30, 2019. Facts of the case to some extents are same as in our case. In this ruling it was held that such fee/charges for healthcare services are exempt under GST. Queries on which Advance Ruling has been sought:- 1. Whether Fee/ charges received by M/s ARPK Healthcare from M/s Asian Hospital is exempted under the provisions of the GST Act, 2017? 2. Whether Fee/charges for Health Care Services received by M/s Asian is exempted under the provisions of the GST Act, 2017? PERSONAL HEARING: On 11.10.2022 Sh. Rajesh Kumar, Chartered Account presented the matter before the authority on behalf of the applicant and enumerated the detail facts of the case. The applicant has also submitted as following on 20.12.2022:- 1. Both of directors of the M/s ARPK Healthcare Private Limited Company are Authorized medical practitioner. The name ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant is a corporation/company registered under the Companies Act, 2013 but the same is not registered as a clinical establishment for providing medical services under the Clinical Establishment (Registration/Regulation) Act, 2010 and the applicant company is planning to execute a contract with M/s Asian Hospital Pvt. Ltd., Faridabad (recipient of the services) to supply the services related to the human resources in the form of' Doctors/nurses/other staff. The applicant will be overall incharge of the gastroenterology department of the recipient of services i.e. M/s Asian Hospital. Primarily, the applicant has raised the query that whether the said supply of services through an agreement/contract to M/s Asian Hospital falls under the category of health care services (SAC 9993) or not? And whether the consideration to be received by the applicant from the Asian Hospital as to be agreed upon by both parties(the contract is yet to be executed) is eligible for exemption under Sr. No 74 of Notification No 12/2017/CT(R) dated 28 June, 201 7 as amended? Before proceeding further to decipher the issue at hand, it is worthwhile to go through the legal provisions as applicable in the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent made for such supply unless the supplier applies such deposit as consideration for the said supply; Section 2(93) "recipient" of supply of goods or services or both, means- (a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration; (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied; Section 2 (102) "services" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; Section 2 (105 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tablishment referred to in sub-clause (1), in connection with the diagnosis or treatment of diseases where pathological, bacteriological, genetic, radiological, chemical, biological investigations or other diagnostic or investigative services with the aid of laboratory or other medical equipment, are usually carried on, established and administered or maintained by any person or body of persons, whether incorporated or not, And shall include a clinical establishment owned, controlled or managed by,- (a) The Government or a department of the Government; (b) A trust, whether public or private; (c) A corporation(including a society) registered under a Central, Provincial or State Act, whether or not owned by the Government; (d) A local authority; and (e) A single doctor, But does not include the clinical establishments owned, controlled or managed by the Armed Forces. D. Further, Entry No 74 of Notification 12/2017-CT (R) dated 28 June, 2017 is as under:- 74 Heading Services by way of- Rate Condition 9993 (a) Health care services by a clinical establishment, an authorized medical practitioner or paramedics: (b) Services provided by way of transportation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clauses 'zg', 's' and 'k' of the notification no. 12/2017. But the outsourcing of infrastructure by M/s Asian Hospital to M/s ARPK Healthcare Private Ltd. is not covered under these definitions, Therefore, the charges/fee paid to M/s Asian Hospital for the said outsourcings of infrastructure are not exempted under the notification no. 12/2017-CT (R) dated 28.06.2017. In the case at hand, the Applicant has stated that authorised medical practitioner employed in M/s ARPK Healthcare Provide Ltd. will provide Gastroenterologist services (Healthcare Services) to the patients of M/s Asian. So, M/s Asian will pay to M/s ARPK for the services rendered by it to the patients of M/s Asian Hospital. Both M/s Asian hospital and M/s ARPK healthcare will share the charges paid by the patients. The Recipient of the services is the hospitals/ Clinical establishment i.e. M/s Asian Hospital Pvt. Ltd., who will enter into contract with the applicant. In short, it is said that the Applicant is vested with contract of taking a space with all amenities related to the Gastroenterological department or in other words M/s Asian will enter into a contract with M/s ARPK to outsource ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e as per the entry of the said notification only when the clinical establishment itself provides this service (treatment related to gastroenterological problems) as a part of health care services to the in-patients as well as out-patients and the same is not available when such supply of services provided by a third party as a contractual arrangement. In this regard, we need to see what is the legislative intention behind any exemption of tax given under the GST Act i.e. the purpose for not taxing the healthcare services is to give benefit to the common man/patients as it (Healthcare services) is one of the basic necessities of life. Similarly in the field of education i.e. School/College/University tuition fees is exempted whereas the tuition fees charged by the coaching centres institutions is taxable. And it is also observed that a company/corporation cannot be a doctor for providing the health care services which are exempted under the notification no. 12/2017 dated 28.06.2017. From an overall view of the matter/issue at hand it can be said that M/s Asian Hospital is/will be outsourcing (the business practice of hiring a party outside a company to perform services or create g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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