2021 (1) TMI 371 - AAR - GST

Taxable Service or Exempt Service - Specified services of appointing Doctors, Nursing Staffs, Ambulances and relating administrative services to corporate entities (Factory/ plant) - HELD THAT - The applicant is a service provider and engaged in the service of supply/ appointing doctors, nurses and administrative staff to corporate entities (Factory/ plant). The applicant contention is that the said service covered under Sr. No.74 of the Notification No. 12/2017-CT(Rate) dated 28.06.2017 and is exempted from payment of GST. Any services of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India provided by a hospital, nursing home, sanatorium or any other institution is exempted from GST in terms of the entry No. 74 of Notification No. 12/2017-CT (Rate) dated 28.06.2017. Whereas the applicant is supplying doctors, nursing staff and other administrative staff to the factory/for their staffs for medical care and he himself is not providing any such medical related services or health care services as defined in para (zg) of the Notification No. 12/2017-CT (Rate) dated 28.06.2017. Also the applicant s office/establishment does not get covered under the category of clinical establishment as defined in para (s) of the said Notification No. 12/2017-CT (Rate) dated 28.06.2017. The service of supply of doctor, nursing staff, ambulances and other administrative staff to the corporate entity for medical care of their staff does not get covered under the Sr. No.74 of exemption Notification No. 12/2017-CT (Rate) dated 28.06.2017. Therefore, the said services of the applicant do not qualify under the definition of healthcare service . Further, applicant s office/ establishment does not get qualified under the definition of clinical establishment given in the para (zg) and (s) respectively of Notification No. 12/2017-CT (Rate) dated 28.06.2017. Therefore, the services provided by the applicant are taxable under GST.

Summary

Issues involved:
1. Whether the services of appointing Doctors, Nursing Staffs, Ambulances, and related administrative services to corporate entities are taxable or exempt under GST.

Analysis:
The applicant, a service provider, sought an advance ruling on the taxability of their services under GST. The applicant contended that their services were exempt from GST under Sr. No. 74 of Notification No. 12/2017-CT (Rate) dated 28.06.2017, which covers health care services by clinical establishments and transportation of patients in ambulances. The applicant argued that their services fell within the scope of exempted services as they provided medical care-related services to corporate entities. They referenced definitions of "clinical establishment" and "health care services" from the notification to support their claim.

The Authority for Advance Ruling considered the applicant's submissions and the relevant provisions of the CGST Act and the GGST Act. The key issue was whether the services provided by the applicant, including appointing Doctors, Nursing Staffs, Ambulances, and administrative services to corporate entities, were exempt or taxable under GST. The Authority noted that the applicant supplied doctors, nursing staff, and administrative personnel to factories/plants for medical care but did not provide medical or health care services themselves as defined in the notification. The applicant's office did not meet the criteria of a clinical establishment as per the notification.

During the personal hearing, the applicant was asked to provide the contract with clients to clarify the nature of services offered. However, the applicant only submitted a purchase order related to ambulance services taxed at 18% CGST+SGST. Based on the discussions and analysis, the Authority concluded that the services provided by the applicant did not qualify as healthcare services or fall under the definition of a clinical establishment as per the notification. Therefore, the services were deemed taxable under GST.

In the final ruling, the Authority determined that the services of appointing Doctors, Nursing Staffs, Ambulances, and related administrative services provided by the applicant were taxable under GST, contrary to the applicant's claim of exemption.