The Karnataka Authority of Advance Ruling (AAR) ruled that no GST is applicable to Medical services and part-time practising in Clinic.
The applicant, Dr. Hosahalli Boraiah Govardhan a proprietary concern, registered under the provisions of the Goods and Services Act, 2017, is a Medical Doctor specialised in Cancer and other General Health Care Services and presently working in KIDWAI HOSPITAL as Salaried Employee and also is rendering Consulting Services to Hospitals/ Laboratories or Biobanks registered in United States of America (USA) and other countries through phone calls, Video Conference, Mails and other Electronic devices.
He is living in India and rendering all medical consultancy services from India to Hospitals or laboratories or biobanks and receives monthly or quarterly remuneration from the USA and other countries in dollars or foreign currency.
He has further stated that he desires to practice in India part-time and receive consultancy income in India from Indian Hospitals or Laboratories and health care services.
The applicant has sought advance ruling on the issues that are the applicant eligible to be registered under GST Act.
Further, the advance ruling was sought on the issue that is there any tax liability on services rendered to the Hospitals / Laboratories/ Biobanks registered in the United States of America (USA) and other countries includes the export of intellectuals like clinical data completions, analysis, clinical opinion advisory consultation through Phone calls, Video Conference, Mails and other Electronic devices and the applicant is living in India and services rendered from the place of India.
The coram consists of Dr. Ravi Prasad and Mashood Ur Rehman Farooqui held that the applicant is providing Business Promotion & Management Services, covered under SAC 9983 and are taxable as discussed at para 11 supra. The applicant is a service provider, as an intermediary, becomes a taxable person and hence is liable for registration in terms of Section 22(1) of CGST Act 2017. Therefore the applicant is liable for registration subject to the threshold limit of turnover.
The AAR ruled that there is no liability of tax on diagnostic and treatment services rendered to Hospitals/ Laboratories/ biobanks registered in the United States of America and other countries. However, the business promotion services rendered, as per the contract submitted, are liable to tax under the GST Acts. “The diagnostic and treatment services are covered under Health Care Services and the medical services and part-time practising in Clinic are exempted from the payment of GST,” the AAR said.
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