GST payable on service of supply of doctor, nursing staff, ambulances etc to corporate entity for medical care of their staff

In re Sparsh OHC Manpower Service (GST AAR Gujarat)

Question:   Specified services i.e. appointing Doctors, Nursing Staffs, and Ambulances and relating administrative services etc. covered under GST, whether it falls in the category of taxable or exempted services?

Any services of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India provided by a hospital, nursing home, sanatorium or any other institution is exempted from GST in terms of the entry No. 74 of Notification No. 12/2017-CT (Rate) dated 28.06.2017. Whereas the applicant is supplying doctors, nursing staff and other administrative staff to the factory/for their staffs for medical care and he himself is not providing any such medical related services or health care services as defined in para (zg) of the Notification No. 12/2017-CT (Rate) dated 28.06.2017. Also the applicant’s office/establishment does not get covered under the category of clinical establishment as defined in para (s) of the said Notification No. 12/2017-CT (Rate) dated 28.06.2017.

Further, during the personal hearing, applicant was requested to submit the copy of the contract entered by them with their clients in respect of supply of the said services so that exact nature of the services provided by the applicant could be understood. However, the applicant instead of submitting the copy of contract provided only the copy of P.O. 4500337564 dated 15.04.2019. On going through the said P.O., it is observed that the said P.O. is with regard to supply of Ambulances and specifically mentioned “GST Rate 18% CGST+SGST”.

In view of the foregoing discussions, it can be concluded that service of supply of doctor, nursing staff, ambulances and other administrative staff to the corporate entity for medical care of their staff does not get covered under the Sr. No.74 of exemption Notification No. 12/2017-CT (Rate) dated 28.06.2017. Therefore, the said services of the applicant do not qualify under the definition of ‘healthcare service’. Further, applicant’s office/ establishment does not get qualified under the definition of ‘clinical establishment’ given in the para (zg) and (s) respectively of Notification No. 12/2017-CT (Rate) dated 28.06.2017. Therefore, the services provided by the applicant are taxable under GST.

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