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TMI Blog2019 (10) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question:- Whether they, being a health care service provider, are exempted from tax or not? 3. The applicant furnishes some facts relevant to the stated activity:- a. The applicant states that they are in the business of providing health care services and cater to the Government Hospitals only on PPP Model for a limited contract period. b. As per the contract, the applicant has been allotted die contract of providing diagnostic services in the Government Hospitals through a tender selection process. c. All expenditure related to the services provided by the applicant are borne by the applicant themse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yadeva Institute of Cardiovascular Science Research, Gulbarga, Kalaburagi Govt of Karnataka Operation and Management of Clinical Laboratory and Radio-diagnostic services f. The structure for receipts and payments are as follows: Billing is done after categorizing various schemes adopted by the Government. 90% of the patients fall under some or the other schemes like BPL, Vajpayee Arogyashree, Suvarna Karnataka Arogya Suraksha, SC/ST Scheme, Janani Shishu Suraksha Yojana, etc. The total collection goes to the concerned entities. At the end of the month, the applicant raises the invoice to the concerned departments as per the rates agreed between the applicant and the contractee at the time of entering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er:- (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, 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 co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 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 undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma. Hence the services by way of diagnosis for illness, deformity-, abnormality or pregnancy are covered under health care services . 4.5 The ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. 5. In view of the foregoing, we rule as follows RULING 1. The diagnostic services provided by the applicant to Hospitals and other establishments are covered under entry no. 74 of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 and hence are exempted from CGST. Similarly, the services are also exempted under the Karnataka Goods and Services Tax Act, as it is covered under entry no.74 of Notification (12/2017) No. FD 48 CSL 2017 dated 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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