Healthcare services provided by a person other than clinical establishment do not qualify for the exemption under GST.(J C Genetic India (P.) Ltd.): AAR

AAR, Madhya Pradesh:

Healthcare services provided by a person other than clinical establishment do not qualify for the exemption under GST.(J C Genetic India (P.) Ltd.)

The Applicant is a Healthcare company and has collaborated with diagnostic companies, certified to provide advance tests that help in the prevention and management of various health disorders. The Applicant filed an application for advance ruling to determine whether the Applicant qualifies to be ‘Clinical Establishment’ and whether healthcare services provided by it are exempt as per the exemption notification under GST?

The Authority for Advance Rulings, Madhya Pradesh observed that the Applicant has a collaboration with diagnostic companies authorized by NABL (National Accreditation Board for Testing and Calibration Laboratories) and DSIR (Department of Scientific and Industrial Research) which itself indicates that the Applicant does not have its own authority for giving clear report or opinion of its own, for the tests conducted and certified by NABL. As per the exemption notification, ‘Clinical Establishment’ means a hospital, nursing home or any other institution that offers services or facilities requiring diagnosis or treatment for illness either as an independent entity or as a part of an establishment. Hence, mere involvement in sophisticated testing would not be sufficient to qualify as a ‘Clinical Establishment’.

The Authority for Advance Rulings, Madhya Pradesh held that the Applicant is functioning as a sub-contractor to the diagnostic companies and not as a ‘Clinical Establishment’ and, hence, healthcare services provided by it, are not exempt as per the exemption notification under GST.