M/s Medivision Scan and Diagnostic Research Centre (P) Ltd.- 2019 (24) G.S.T.L. 788 (A.A.R. – GST – Kerala)

Services provided by diagnostic centres is healthcare services not liable to GST and no requirement to take registration

Facts: In this case, the applicant was engaged in diagnostic services such as clinical biochemistry, microbiology, chemotology, clinical pathology, radiology, ECG, radiometry, pulmonary function test etc. They were rendering services through qualified laboratory technicians, paramedical technicians, doctors and radiologist.

Issue: Whether applicant being diagnostic service provider is liable to take registration under GST and would be covered by Exemption Notification No. 12/2017.

Held: The Hon’ble Kerala AAR held that as per SRO No. 371/2017 vide serial no. 74, service covered under SAC 9993 in connection with health care by a clinical establishment, and authorized medical practitioner or paramedics is exempted. Services by way of diagnosis come under the category of health care services as per clause 2 (zg) of SRO No. 371/2017. Similarly, a clinical establishment offering services of diagnosis squarely comes under the category of clinical establishment as per clause 2(s) of SRO No. 371/2017.

In the instant case, the applicant offers services such as medical diagnostic tests to facilitate diagnosis process and, therefore, the services provided by the applicant qualify as health care services and are eligible for exemption from GST.

Further, AAR ‘By virtue of Section 23 of CGST Act, any person engaged exclusively in the business of supplying goods or both that are not liable to tax or exempt from tax are not liable to get registration. However, such person is liable to obtain registration if they are receiving any goods or services liable to tax under reverse charge as per notifications issued under Section 9(3) of SGST Act’.



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