DR. H.B. Govardhan – 2021 (46) G.S.T.L. 85 (A.A.R. – GST – Karnataka)

Doctor providing intermediary services along with health care services is liable to take registration.

Facts– In this case the applicant is a proprietary concern registered under the provisions of the GST Act, 2017, is a Medical Doctor specialized 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/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/laboratories/biobanks and receives monthly/quarterly remuneration from USA and other countries in dollars/ foreign currency. He has further stated that he desires to practice in India part time and receive consultancy income in India from Indian Hospitals/ Laboratories and health care services.

The applicant filed the instant application, in relation to requirement of registration and determination of liability to pay tax.

Held– In order of AAR it was held that the applicant is liable for registration under the GST Acts and. Services supplied by way of diagnosis of illness are fully covered under Health Care services. Applicant also covered under definition of clinical establishment where the Full exemption is admissible on these services under Entry No. 74 of Notification No. 12/2017-C.T. (Rate). This exemption is also admissible on his proposed part time consultations to Indian patients under Section 8 of Central Goods and Services Tax Act, 2017. There is no liability of tax on diagnostic and treatment services rendered to Hospitals/Laboratories/biobanks registered in United States of America and other countries. However, the business promotion services are being provided as an agent of foreign entity and not on his own account; hence it is covered under intermediary services and place of supply of services is in India, it is not export of services, are liable to 18% tax under the GST Acts.


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