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TMI Blog2018 (9) TMI 2102X X X X Extracts X X X X X X X X Extracts X X X X ..... ployer to employee and hence may not subject to GST. This view is also supported by Press release issued by CBEC on 10.07.2017. Supply of Drugs and Medicines is a Taxable Supply under the GST Act and the rates are accordingly prescribed under Chapter 30 and Heading 9804 of the GST Tariff - Human Health Care and Social service is also a Taxable Supply under the GST Act and the rates are accordingly prescribed under the Heading 9993 of the GST Tariff - But vide SI No. 74 of Notification NO. 12/2017-Central Tax (Rates), dated 28.06.2017 Health Care Services are exempted from levy of GST. Services provided to non-employees - HELD THAT:- Doctor's Consultancy services provided in the hospital is an activity for diagnosis or treatment or care for illness, injury, etc. Hence, it is covered by the definition of Health Care Services and accordingly not chargeable to GST - Test and Scan services provided in the hospital is an integral part for diagnosis or treatment or care for illness, injury, etc. Hence, it is covered by the definition of Health Care Services and accordingly not chargeable to GST - Admission Charges, Bed Charges, Operation Charges, Sundry Charges, etc. recover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt (IPD). A detailed list of services provided by the hospital is given Annexure-A. To facilitate the purpose of providing Health Care Services, the hospital is purchasing necessary Machine Equipment for various Tests and Scans, Ambulance for transportation of patients, and machines for supply during the course of Treatment of patients. 3. The services provided by the Hospital are of the following categories of people:- a) Employee of TML and their dependents. b) Non-Employees (Employee of other Associated Business Entities) and their dependents. c) Non-Employees resident (Cash Patients). 4. There is no consideration for services provided to people in category (a) mentioned above, being part of employment contract. Whereas, the consideration of services provided to people in category (b) is collected from their respective Associated Business Entities at the end of every month and the consideration from people in category (c) is collected in form of cash. List of services provided by the Hospital:- SI.No. Description of Services Category of people availing the Services Considerati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ambulance Services a) Employee of TML b) Non-Employees (Employee of other Associated Business Entities) c) Non-Employees (Cash Patients) a) No consideration b) Billed to Individual c) Billed to Individual 8 Mortuary a) Employee of TML b) Non-Employees (Employee of other Associated Business Entities) c) Non-Employees (Cash Patients) a) No consideration b) No consideration. However, Billed to Individual, if the Dead Body is brought from outside. c) No consideration. However, Billed to Individual, if the Dead Body is brought from outside. 9 Funeral Truck (Hearse) a) Employee of TML b) Non-Employees (Employee of other Associated Business Entities) c) Non-Employees (Cash Patients) a) No consideration b) Billed to Individual c) Billed to Individual 5. The applicant sought Advance Ruling on the following questions/issues:- (i) Whether Doctor's Consultancy as mentioned in SI N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es or both, within the meaning of that term. 7. From the aforesaid provisions of Advance Ruling it is observed that the Applicant is eligible to seek Advance Ruling under sub-para (e) i.e. Determination of the liability to pay tax on any goods or services or both , of Section 97(2) of the Central Goods Services Tax Act, 2017. 8. The Applicant with regard to each question given in Annexure-B in so far it relates to TML Employees and their dependents inter-alia submitted that;- 8.1 The medical facility availed by employees in Applicant's (TML) run hospital is as per terms of employment contract and part of CTC. 8.2 As this is a part of facility for employee in terms of contract of employment, it cannot be treated as service provided by employer to employee and hence not subject to GST. This view is also supported by Press release issued by CBEC on 10.07.2017. 8.3 Accordingly all the facilities provided by the hospital to the employees and their dependents (All Question of Annexure-'B with regard to Employees) should not attract GST. 8.3a Supply of Drugs and Medicines is a Taxable Supply under the GST Act and the rates are accordingly prescribed under Cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red from patients is towards miscellaneous facility provided in the hospital which is directly linked to treatment of illness, injury, etc. Hence, is covered by the definition of Health Care Services and accordingly not chargeable to GST. Also Circular No.32/06/2018-GST, dt. 12.02.2018 vide SI. No. 5 supports their above view. 4. Medicine Dispensation to In-Patients is in the course of treatment or care for illness, injury, etc. Hence it is covered by the definition of Health Care Services and accordingly not chargeable to GST. 5. Medicine Dispensation to Other Patients after the consultancy from Doctor's is also in the course of treatment or care for illness, injury, etc. Hence it is covered by the definition of Health Care Services and accordingly not chargeable to GST. 6. Preventive Health Check-up is a preliminary investigation process for diagnosis of illness. Hence it is covered by the definition of Health Care Services and accordingly not chargeable to GST. 8.6 As per Section 2(30) of the Central Goods and Services Tax (CGST) Act, 2017, the term composite supply means a supply made by a taxable person to a recipient consisting of two or more tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wide their written submission dated 02-08-2018. 10.0 Findings Discussion:- 10.1 We have considered the submissions made by the Applicant in their application for Advance Ruling as well as the submissions made by the jurisdictional officer during Personal Hearing. We also considered the questions/issues on which Advance Rulings have been sought for by the applicant, relevant facts having bearing on the questions/issues raised, the applicant's understanding/interpretation of law in respect of the issue. 10.2 The applicant sought Advance Ruling on the six questions i.e.- 1. Whether Doctor's Consultancy as mentioned in SI No. 1 of Annexure-A to the various categories of people specified in SI No.l is taxable under GST or not? 2. Whether Tests and Scans as mentioned in SI No.2 of Annexure-A to the various categories of people specified in SI No.2 for IPD and /or OPD cases is taxable under GST or not? 3. Whether Admission charges, Bed Charges, Operation Charges, Sundry Charges, etc as mentioned in SI No.3 of Annexure-A to the various categories of people specified in SI No.3 is taxable under GST or not? 4. Whether Medicine Dispensation to In-Patien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases; 10.6 Pertaining to the services provided by the Applicant to their Employees and their dependents ,it is observed that the Applicant run hospital is as per terms of employment contract and part of CTC.As this is a part of facility for employee in terms of contract of employment, it cannot be treated as service provided by employer to employee and hence may not subject to GST. This view is also supported by Press release issued by CBEC on 10.07.2017. 10.6a Supply of Drugs and Medicines is a Taxable Supply under the GST Act and the rates are accordingly prescribed under Chapter 30 and Heading 9804 of the GST Tariff. 10.6b Human Health Care and Social service is also a Taxable Supply under the GST Act and the rates are accordingly prescribed under the Heading 9993 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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