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TMI Blog2023 (1) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... as such, which is a contradiction. This understanding of the appellant regarding vaccination process is flawed and distorted. The individual goes to the covid vaccination Center for the receipt of vaccine, by following the government guidelines of registering himself/herself in the portal and gets an appointment on a scheduled date to receive the vaccine, etc. Once the individual is vaccinated, there is transfer of goods undoubtedly, as the recipient receives the stipulated amount of dosage of medicine. Health Care Services are defined under 'Definitions' at (zg) of Notification No.12/2017 Central Tax (Rate) dt.28.06.2017. As per the definition, only diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy qualifies as Health Care Services . Needless to say, that when a person approaches a clinical establishment (hospital) for health care service like diagnosis/treatment/care for illness, injury, deformity, abnormality or pregnancy qualify for exemption under Entry 74 of Notification No. 12/2017 Central Tax (Rate) dt.28.06.2017. It is to also note that diagnosis/treatment/cure are services which are rendered by clinical establishments afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground of the Case: The appellant, M/s. Krishna Institute of Medical Sciences Limited is a public limited Company, and a multi-specialty hospital, rendering healthcare services and claiming exemption on the said service vide notification no. 12/2017 Central Tax Rate. Apart from healthcare services, the Company also makes pharmacy supplies based on doctors prescriptions to outpatients, which is taxable and accordingly the Company remits taxes on the same. The Company has been permitted to administer COVID-19 vaccine. The Appellant sought clarification with regard to the activity of administering of COVID-19 vaccination by hospitals and approached the Authority for Advance Ruling on the following questions: Question: Whether administering of COVID-19 vaccination by hospitals is Supply of Good or Supply of Service? Question: Whether administering of COVID-19 Vaccine by clinical establishments (Hospitals) qualify as Health care services as per Notification No. 12/2017 Central Tax Rate dated 28.06.2017? Question : Whether administering of COVID-19 vaccination by clinical establishment is exempt under GST Act? The Authority for Advance Ruling Andh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fessionals only. The learned authority believes that only inpatient services by hospital is only exempt and not outpatient healthcare services. It has been stated by the learned authority in third para of page no. 8 of the ruling that 'by no stretch of imagination, the receipt of vaccine can be considered as inpatient services rendered by the hospital in this regard. In this regard, we would like to submit that not only inpatient services are being exempt, but outpatient healthcare service, diagnosis, care for illness, etc are also exempt under GST. It is admitted that the said supply will not be considered as inpatient service but examination should not limit to that extent because the outpatient services are also exempt, therefore, the authority should have applied the test of examination over outpatient service as well, which was not done. Hence, we submit that the vaccination process is covered under outpatient services and thereby exempt under GST. 2.4 Why the supply should not be considered as Supply of Good: The learned authority in second para of page no 7 of the ruling has stated that where he purchases the vaccine and gets it administered subsequently , in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ination process is flawed and distorted. The individual goes to the covid vaccination Center for the receipt of vaccine, by following the government guidelines of registering himself/herself in the portal and gets an appointment on a scheduled date to receive the vaccine, etc. Once the individual is vaccinated, there is transfer of goods undoubtedly, as the recipient receives the stipulated amount of dosage of medicine. On successful vaccination, every individual is being issued with a certificate to the effect that the person has been vaccinated with XXX vaccine on XXX date. This in itself is an evidence that the vaccine (goods) has been injected into the body of the (supplied / transferred to the) individual / person. Further, with reference to appellant's contention that 'the recipient cannot purchase the vaccine (it is not sold at pharmacy outlets)' is also a 'mis-conception'. As the vaccine is being controlled directly by the Government, the Government has set a procedure. Any person wishes to have the vaccine, can procure the same at specified cost i.e. in other words purchase the same for himself / herself by way of following the set procedure. Thus, m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (hospitals) would qualify as Health Care Services as per Notification No.12/2017 Central Tax (Rate) dt.28.06.2017. SI.No. Chapter, Section, Heading, Group or 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 paramedics; (b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above. Nil Nil Definitions. - For the purposes of this notification, unless the context otherwise requires, (s) clinical establishment means a 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 recognised system of medicines in India, or a place established as an independent entity or a part of an establishment t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of administering a vaccine does not fit into the definition of Health Care Services as per Notification No. 12/2017 Central Tax (Rate) dt.28.06.2017. In para 2.4, the appellant argues that, the recipient cannot purchase the vaccine as it is not sold at pharmacy outlets, hence it cannot be considered as supply of good. However, the service of administering the vaccine has all the necessary elements to classify it as supply of goods and this has already been discussed supra. The outlet of supply or the supplier cannot decide whether a transaction can be classified as supply or not. There is transfer of medicine to the recipient when he approaches the Covid Vaccination Centre for vaccination, the recipient of vaccine makes a conscious choice of vaccine, and also pays a price for it as per the guidelines of the government. Finally, we confirm that exemption is not allowed in the instant case against the claim of the applicant. While validating the decision of the lower authority that taxability of the supply comes under 'composite supply', wherein the principal supply is the 'sale of vaccine' and the auxiliary supply is the service of 'administering the va ..... X X X X Extracts X X X X X X X X Extracts X X X X
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