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No IGST applicable on Testing Services performed in Laboratory outside India: AAR [Read Order]

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The Karnataka Authority of Advance Ruling (AAR) ruled that the testing services performed by the laboratories outside India are exempted from Integrated Goods and Service Tax (IGST).

The applicant, M/s DKMS BMST India Foundation registered under GST Act, 2017. The applicant is the non-profit organization facilitating the treatment of blood cancer and other blood disorders by promoting awareness and encouraging people to register as potential blood stem cell donors as well as facilitating the process of blood stem cell donations.

The applicant sought the advance ruling on the issue that whether the applicant is liable to pay Integrated Goods and Service Tax (IGST) on the Human Leukocyte Antigen (HLA) testing services performed by the overseas laboratory outside India on the human buccal swabs sent by DKMS BMST from India.

The authority consisting of members Dr. M.P. Ravi Prasad and Mashood Ur Rehman Farooqui ruled that the service of Human Leukocyte Antigen (HLA) typing received by DKMS BMST Foundation India from the overseas laboratory is covered under the definition of  “health care services by clinical establishment” and thereby exempted from Integrated Goods and Service Tax (IGST) leviable thereon and accordingly not taxable in the hands of the applicant under reverse charge mechanism.

“The applicant is not liable to pay Integrated Goods and Service Tax (IGST) on the testing services performed by the overseas laboratory outside India on the human buccal swabs sent by DKMS BMST from India,” the authority observed.

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