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GST for pathology labs

rumy nagwaswala (ca) (45 Points)

16 June 2017

whether GST is applicable for pathology labs

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178421 Points)
Replied 17 June 2017

Health Care Services by a clinical establishment, an authorised medical practitioner or para-medic is exempted under GST.

Under this exemption, all treatment or diagnosis or care for any illness, injury, deformity, abnormality or pregnancy by a clinical establishment is covered. Authorised medical practitioners in any recognised branch of medicine like private medical practitioners (doctors), physiotherapists are also exempted from service tax. The term para-medico is not defined in the Act. However, it has been clarified in the Education Guide that Paramedics are trained health care professionals, for example nursing staff, physiotherapists, technicians, lab assistants, etc. Services by them in a clinical establishment would be in the capacity of employee and not provided in independent capacity and will thus be considered as services by such clinical establishment. Similar services in independent capacity are also exempted.

Such treatment or care of patient could be in any recognised system of medicines in India like Allopathy, Naturopathy, Ayurveda, Homoeopathy, or Unani. These systems of medicines are recognised in terms of cl. 2(h) of the Clinical Establishments Act, 2010. Any other system of medicine that may be recognised by the Central Government is also been entitled for this exemption. However, it does not include hair transplant or cosmetic or plastic surgery, except that such surgery is undertaken to restore or reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;

The clinical establishment would mean any hospital, nursing home, clinic, sanatorium or any other institution by whatever name called. It could be a place established as a part of an establishment or any private diagnostic centre like x- ray clinic, pathological laboratory or any diagnostic or investigative centre.

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rumy nagwaswala (ca) (45 Points)
Replied 17 June 2017

thanks for the exhaustive explanation

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178421 Points)
Replied 02 July 2017

My Pleasure

R.M.Raja (Audit assistant) (197 Points)
Replied 04 July 2017

Thanks for Explanation

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Sandeep Saraf (2 Points)
Replied 11 July 2017

Are healthcare aggregators exempted under GST

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UJJAL (AGM-ACCOUNTS & FINANCE) (24 Points)
Replied 08 August 2017

Service provided under SAC code Medical laboratory and diagnostic-imaging services ,

Tax rate is 18%

so it not an Clinical establishment..

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178421 Points)
Replied 08 August 2017

As per Notification No.11/2017-Central Tax (Rate) ,dt. 28-06-2017, the rates of service are fixed as:

30 Heading 9992 Education services. 9 -

31 Heading 9993 Human health and social care services. 9 -

32 Heading 9994 Sewage and waste collection, treatment and disposal and other environmental protection services. 9 -

Also As per Annexure to the notification:::

Annexure: Scheme of Classification of Services..........

603 Heading 9993 Human health and social care services

604 Group 99931 Human health services

605 999311 Inpatient services

606 999312 Medical and dental services

607 999313 Childbirth and related services

608 999314 Nursing and physiotherapeutic services

609 999315 Ambulance services

610 999316 Medical laboratory and diagnostic-imaging services

611 999317 Blood, sperm and organ bank services

612 999319 Other human health services including homeopathy, unani, ayurveda, naturopathy, acupuncture and the like

So, the ambiguity is that either whole health care services are at 18% GST rate.........

or as per earlier rates declared as NIL rate ?????????????

Refer:: 1. https://www.cbec.gov.in/resources//htdocs-cbec/gst/Notification11-CGST.pdf

2. https://www.cbec.gov.in/resources//htdocs-cbec/gst/Notification11-CGST-Annexure.pdf

3. https://www.cbec.gov.in/resources//htdocs-cbec/gst/services-booklet-03July2017.pdf

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UJJAL (AGM-ACCOUNTS & FINANCE) (24 Points)
Replied 08 August 2017

it taxable at 18% as it has separate SAC code with specified GST rate..

FARSA RAM (accountant ) (22 Points)
Replied 27 August 2017

laboratory aur x-ray par gst kitana hain, szn code kyaa kain.

RAJAT (CA Practice ) (23 Points)
Replied 31 August 2017

A clinic Establishment issues a bill of medical health care services to a patient/ TPA wherein details of consumables medicines and medical items used during surgery with value/ Qty of items consumed. Whether a said clinical establishment requires registeration under GST/ CGST???????

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Kiran Crasta (Senior Associate) (45 Points)
Replied 15 September 2017

You are Correct Sir Dhirajlal Rambhia, Section 11 overrides the Section 9 of the GST Act. Hence if any Services are notified to be exempt, they are exempt inspite of any Notification issued under Section 9.

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