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Gst - exempted services

Asha P (Accountant) (27 Points)

10 June 2017

Healthcare services is exempted under GST. Whether room rent received from patients in hospital is still taxable under GST? At present luxury tax is paid for room rent above Rs.1000/-.

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10 Replies

Preeti (Team_GSTSoln) (Team GST Experts) (1926 Points)
Replied 10 June 2017

in my knowledge , though the luxury tax also been subsumed under gst, room rent of hospital is also exempt

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Asha P (Accountant) (27 Points)
Replied 10 June 2017

In a seminar of KPMG, Ernakulam Salestax Commissioner in Kerala clearly said this is a composite service and it attracts tax. Need more clarification.

Asha P (Accountant) (27 Points)
Replied 11 June 2017

Can anyone give me more clarification regarding my doubts. Due to different opinions we are in confusion

Asha P (Accountant) (27 Points)
Replied 11 June 2017

Can anyone give me more clarification regarding my doubts. Due to different opinions we are in confusion

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (179906 Points)
Replied 11 June 2017

Firstly, it is to be notified as composite supply by CBEC. Otherwise the room facility, which is required to be provided as part and parcel of medical treatment will remain exempt.

Secondly, Rate of tax applicable to the principal supply liable to be charged to the whole composite bundle. Therefore, rate of GST applicable to health care supply will be applicable to room rents!!

Thirdly, in case of its applicability, we are smart enough for not charging room rent separetely, but a packged bill for medical treatment only. !!!!

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Preeti (Team_GSTSoln) (Team GST Experts) (1926 Points)
Replied 11 June 2017

dhirajlal ji absolutely correct. there is as no such clarification is there, do as u want

Starcul Corporation (3 Points)
Replied 11 June 2017

whether export of services need to pay GST? if no than whether he has to take GST registration or not?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (179906 Points)
Replied 12 June 2017

As per the provisions of IGST law, export of goods and/or services are to be treated as “zero rated supplies” and a registered taxable person exporting goods or services shall be eligible to claim refund under one of the following two options:

Export under bond or letter of undertaking without payment of Integrated Tax and claim refund of unutilized input tax credit.
Export on payment of Integrated Tax and claim refund of the tax so paid on goods and services exported. The aforesaid refunds will be subject to rules, safeguards and procedures as may be prescribed.

So, registration would be mandatory.