9911796707
TMI Blog2024 (11) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... r companies/insurance companies/insurance brokers, to manage the workflows for availing the services of the said diagnostic labs / clinical establishments for their employees or group of people; as per Notification 12/2017-Central Tax, services by way of health care services by clinical establishment are exempted and thus the service is being provided by the clinical establishment to the persons using the digital platform of the applicant and the applicant is only working as an aggregator; the service mentioned by the applicant comes under the definition of e-commerce and hence the applicant is not required to collect the tax under GST. Whether the applicant qualifies to be an e- commerce operator or not? - HELD THAT:- In the instant case the applicant owns a digital platform / mobile App. The employees or group of people of companies / insurance companies / insurance brokers i.e. recipients of service having contract with the applicant, selects the diagnostic labs or wellness providers and books specific date time, from the list provided on the digital platform / App. Once the tests are done the diagnostic labs or wellness providers raise invoice on the applicant and the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cant are not connected, not even remotely, with the sale of insurance policies and hence the applicant does not fall under the definition / meaning of the Insurance Agent . Therefore the applicant has to raise invoice on par with the other companies. - SRI. KIRAN REDDY T AND SRI. PRATHAP KUMAR S MEMBER ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s. Medpiper Technologies Pvt. Ltd., (herein after referred to as 'Applicant'), Site No.677, 27th Main, 13th Cross Road, Sector-1, HSR Layout, Bengaluru-560 102, having GSTIN 29AANCM4050E1ZF, have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act, KGST Act. 200 2. The applicant submitted that they act as an aggregator for diagnostics and labs for companies, insurance companies and insurance brokers; they provide access to digital platform, digital tools to manage workflows for the companies/insurance companies/insurance brokers; as an aggregator they aggregate a network, pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant to provide the said services to a specific group of people. These employees or groups of people can select a specific date, time and a specific diagnostic and lab tests to be done from diagnostic lab and wellness providers from the list the applicant provides. The medium of interaction between these employees and group of people with the applicant and with diagnostic labs can be through a mobile app developed by the applicant or Whatsapp or e-mail or telephonic conversation. The diagnostic labs will be providing medical reports to these employees or group of people through the medium of their choice. 5.2 The applicant acts as an aggregator for diagnostics and labs for companies, insurance companies and insurance brokers; they provide access to digital platform, digital tools to manage workflows for the companies/insurance companies/insurance brokers; as an aggregator they aggregate a network, provide standard pricing to companies/insurance companies/insurance brokers, collect payment and then disburse the payment to labs, while retaining a margin; as a digital workflow tool/platform they provide the tool for free for the companies/insurance companies/insurance brokers to mana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e through a digital platform to an insurance company and hence does not qualify as an insurance agent. Thus the Reverse Charge Mechanism (RCM) under GST is not applicable for the said services provided by the assesse (applicant) to an insurance company. PERSONAL HEARING PROCEEDINGS HELD ON 28.10.2024 7. Sri. Unnikrishnan Nair, Manager, Accounts Authorised Representative of the applicant appeared for personal hearing proceedings and reiterated the facts narrated in their application. FINDINGS DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matters and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We also considered the issues involved on which advance ruling is sought by the applicant and relevant facts along with the arguments made by the applicant the subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cant and the applicant is only working as an aggregator; the service mentioned by the applicant comes under the definition of e-commerce and hence the applicant is not required to collect the tax under GST. We proceed to examine the issue i.e. whether the applicant qualifies to be an e- commerce operator or not. In this regard, we invite reference to the Section 2(44) and 2(45) of the CGST Act 2017, which are as under: 2(44)-electronic commerce means the supply of goods or services or both, including digital products over digital or electronic network; 2(45) -electronic commerce operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce; It could be inferred from the definitions supra that Electronic Commerce Operator (ECO) means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce i.e. for the supply of goods or services or both, including digital products over digital or electronic network. 12. In the instant case the applicant owns a digital platform / mobile App. The employees or group of people of companies / insurance companies / insurance brokers i.e. recipi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he services being provided by the applicant are by way of diagnosis for illness etc., in a recognised system of medicines in India and hence the impugned services being diagnostic services are covered under healthcare services and thus gets covered under SAC 9993. 15. Now we proceed to examine the rate of GST applicable to the impugned services. The applicant contended that as per Notification 12/2017-Central Tax, services by way of health care services by clinical establishment are exempted as the service is being provided by the clinical establishment to the persons using the digital platform of the applicant and the applicant is only working as an aggregator. In this regard we invite reference to entry number 74 and also paras 2(zg) 2(s) of the Notification 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, which are as under: Para 2(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 pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India as the applicant, admittedly, is not a hospital or nursing home or clinic or sanatorium or any other similar institution, but an aggregator procuring the services from diagnostic labs. Thus the applicant do not qualify to be a clinical establishment. Therefore the second condition is not fulfilled and hence the applicant is not entitled to avail the aforesaid exemption. Thus the applicant is liable to collect GST on the diagnostic and lab services provided through third party diagnostic labs to their clients. 16. The second question is with regard to collection of TCS by the applicant. The question of collection of TCS arises only when the applicant is an e-commerce operator. As it is already decided at para 12 supra that the applicant does not qualify to be an e-commerce operator, the instant question becomes redundant. 17. The third question is whether the applicant falls under the definition / meaning of Insurance Agent, if invoiced to an insurance company and if yes, how the GST is applicable. The term insurance agent has not been defined under Section 2 of the CGST Act 2017. S ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
