Fees for Gastroenterologist Services received by M/s Asian exempt from GST: AAR [Read Order]

The Haryana Authority for Advance Ruling (AAR), observed that the Fees for Gastroenterologist services received by M/s Asian exempt from GST.

M/s ARPK Healthcare Private Limited is providing Health Care Services as defined in clause (zg) of the notification number 12/2017 dt. 28.06.2017. Similarly, M/s Asian Institute of Medical Science (a unit of Blue Sapphire Healthcare Private Limited) is providing Healthcare Services as defined in clause (zg) of notification no. 12/2017.

M/s ARPK, the applicant, has approached to M/s Asian Institute of Medical Science, that authorised medical practitioner employed in M/s ARPK Healthcare Provide Ltd. will provide Gastroenterologist services (Healthcare Services) to the patients of M/s Asian.

Fee/Charges of Gastroenterologist services will be paid by patient to M/s Asian Hospital. Thereafter M/s Asian will pay to M/s ARPK for the services rendered by them to the patients of M/s Asian Hospital. Both M/s Asian hospital and M/s ARPK healthcare will share the charges paid by the patients.

The legislative intention behind any exemption of tax given under the GST Act i.e. the purpose for not taxing the healthcare services is to give benefit to the common man/patients as it (Healthcare services) is one of the basic necessities of life. Similarly in the field of education i.e. School/College/University tuition fees is exempted whereas the tuition fees charged by the coaching centres institutions is taxable.

M/s Asian Hospital outsourced its requirements of specialized doctors particularly the gastroenterological services from the applicant company and not treating the patient by itself as a clinical establishment. The exemption claimed by the applicant is available as per the entry of the said notification only when the clinical establishment itself provides this service (treatment related to gastroenterological problems) as a part of health care services to the in-patients as well as out-patients and the same is not available when such supply of services provided by a third party as a contractual arrangement.

The Two-member Bench consisting of Sunder Lal, CGST Member and Kumud Singh, SGST Member noted that “Fee/charges for Health Care Services received by M/s Asian is exempt under GST except for the services mentioned under heading 9993 clause no. 3 IA vide notification no. 13.07.2022.”

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