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TMI Blog2021 (2) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... T Act, 2017 and also under the IGST Act, 2017. Business Promotion Services provided by the applicant to the foreign companies - HELD THAT:- It is seen that the applicant is a registered person in India and the recipient of services is the foreign company. The applicant is getting the consideration in foreign currency from the foreign company to which he is providing services - The contract is examined with regard to the compensation and it is seen that the applicant is paid a monthly retainer of US $5000 and the applicant shall submit an invoice for each billing period on the last day of the corresponding month. In addition to this, the foreign recipient shall also pay the applicant funds for carrying out projects requested by the foreign company. Further, the foreign company shall reimburse for expenses incurred by the applicant and his agents or employees on behalf of the foreign company, including travel, lodging, meals for customer visits or conferences. These expenses should be pre-approved by the foreign company and the applicant shall submit expense reports and reasonable documentation on a periodic basis to the foreign company. In the instant case, the applicant is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treatment services provided by the applicant from his clinical establishment to any person in India would be exempt as per the entry 74 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 and entry 74 of Notification (12/2017) No. FD 48 CSL 2017 dated 29.06.2017 and entry 77 of Notification No. 09/2017- Integrated Tax (Rate) dated 28.06.2017. - KAR ADRG 04/2021 - - - Dated:- 29-1-2021 - DR. RAVI PRASAD M.P. AND SRI. MASHHOOD UR REHMAN FAROOQUI, MEMBER Represented by : Dr. H.B. Govardhan, ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER 98(4) OF THE KGST ACT, 2017 Dr. Hosahalli Boraiah Govardhan, No.85, Near Corporation Bank, 1st Floor, Magadi Main Road, Anjananagar, Bengaluru 560091, (hereinafter referred to the applicant ) having GSTIN 29SUOPB7362A1ZO, has filed an application for Advance Ruling under Section 97 of the CGST Act,2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of the KGST Act, 2017 read with Rule 104 of KGST Rules 2017, in FORM GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act and KGST Act. 2. The applicant, a proprietary concern, registered under the provisions of the Goods and Services Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is giving external health care services to laboratories, hospitals, bio-bank companies situated outside India, either in USA or other countries as Export of Clinical Information Intellectuals, Clinical data completion, data analysis, through electronic devices and getting monthly or quarterly remuneration in dollars depending on his work. He is desirous to know whether there is a tax liability and whether these services come under GST as it includes health care services outside India and also includes export of intellectuals and getting remuneration from USA in dollars. PERSONAL HEARING / PROCEEDINGS HELD ON 30.07.2020 6. Dr. H. B. Govardhan, the applicant medical practitioner himself appeared for personal hearing proceedings on 28.07.2020 before this authority and reiterated the facts and submitted as under: 6.1 The applicant is presently a practicing medical doctor and is providing consultation facilities to the patients in India. He is also giving consultation related to diagnosis and treatment of cancer patients referred to by Hospitals, Laboratories and Biobank Companies situated abroad for which he is receiving remuneration based on the work done to them. He is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollaborative projects between the foreign company and the clinical centres located in India and business development for the foreign companies. 8. Regarding the first type of services, i.e. Consultation Services in diagnosis and treatment of illness the following is observed:- 8.1 Entry no. 74 of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 reads as under: Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 74 Heading 9993 Services by way of- (a) Health care services by a clinical establishment, an authorised medical practitioner or para-medics; (b) Services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above Nil Nil 8.2 The term health care services is defined in clause (zg) of paragraph 2 of the said Notification and the same reads as under: (zg) health care services means any service by way of diagnosis or treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pient shall also pay the applicant funds for carrying out projects requested by the foreign company. Further, the foreign company shall reimburse for expenses incurred by the applicant and his agents or employees on behalf of the foreign company, including travel, lodging, meals for customer visits or conferences. These expenses should be pre-approved by the foreign company and the applicant shall submit expense reports and reasonable documentation on a periodic basis to the foreign company. 9.2 The nature of the services, described in Schedule A attached to the Consulting Agreement, have been examined and found that the applicant is agreed to supply the following services. 1. Develop new clinical centres within the Cureline clinical network for collection, processing and analysis of the human biospecimens. 2. Manage standard and custom tissue procurement Projects as requested by Cureline, including: i. Consulting (SOP, site selection and training, etc.) on human tissue collection ii. Tissue collection and shipping logistics iii. Tissue processing and embedding iv. Stained and unstained slide preparation v. Special diagnostic staining vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ace of supply of the Intermediary Services be the location of the supplier of services. Thus the place of supply in this case is location of the applicant i.e. India. Hence the impugned services are taxable under GST Law. 10.3 Now we proceed to examine the issue whether the services provided by the applicant are covered under export of services or not, for which we invite reference to the definition of the term export of services , under clause (6) of section 2 of the Integrated Goods and Services Tax Act, 2017, which reads as under: (6) export of services means the supply of any service when,- (i) The supplier of service is located in India (ii) The recipient of service is located outside India; (iii) The place of supply of service is outside India; (iv) The payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian Rupees wherever permitted by the Reserve Bank of India; and (v) The supplier of service and the recipient of service are not mere establishments of a distinct person in accordance with Explanation 1 in section 8 10.4 In the instant case, with regard to this service, th ..... 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