2018 (5) TMI 1737 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2018 (13) G. S. T. L. 224 (A. A. R. – GST), [2018] 2 GSTL (AAR) 102 (AAR) – Levy of GST on Health care services – diagnosis, pre & post counseling therapy and prevention of diseases by providing sophisticated and relevant tests – N/N. 12/2017- Central Tax (Rate) dated 28th June, 2017 – Whether the Applicant qualifies as clinical establishment? – Whether the services provided by the applicant qualifies to be health care services?
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Clinical Establishment – Held that:- The applicant offers services/facilities requiring diagnosis such as patient counselling, suggesting the relevant test for the patient, collecting samples, obtaining the result of the test, sharing the test results and post counselling. The medical team of the applicant discusses with the oncologist/pathologist, takes samples of required tissues and send it for the tests to US/Germany, with regard to the oncology/auto immune deceases. They play the role of
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KAR ADRS 5/2018 Dated:- 21-3-2018 – Sri Harish Dharnia, Joint Commissioner of Central Tax And Dr. Ravi Prasad M. P., Joint Commissioner of Commercial Taxes (Vigilance) RULING 1. M/s Sayre Therapeutics Pvt. Ltd., Bengaluru, ('the applicant') is a registered taxable person registered under the Central Goods and Services Tax Act, Karnataka Goods and Services Tax Act and Integrated Goods and Services Tax Act, The applicant is involved in the diagnosis, pre and post counselling, therapy and prevention of diseases by providing tests that are sophisticated and relevant. 2. The applicant is a healthcare company dealing with oncology ajid immunology therapy and diagnostics related products. They in-licenses medicines, secures regulatory approvals post clinical studies and then commercialises novel drugs, devices and molecular diagnostics in therapeutic areas, i.e. oncology and auto immune disorders, thereby transforming patient care. The applicant is specifically working in precision d
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, is a microarray based gene expression test that aids in identifying challenging tumours, including metastatic, poorly differentiated and undifferentiated cancers. This test assumes significance, as current day precision therapy can be effective only if the site of origin is known. Similarly, they have collaborated with a molecular diagnostic company from Germany to provide advance genetic diagnostics tests that help in prevention and management of cancers and blood disorders, In all these diagnostic tests, die Medical team of the applicant is involved in the complete cycle of testing process beginning with patient counselling to sharing the results and post-test counselling. Thus, the applicant is involved in diagnosis, pre- and post-counsel ling, therapy and prevention of diseases by providing tests that are sophisticated and relevant. (c) The Entry No. 74 of Notification 12/ 2017- Central Tax exempts health care services at clinical establishment, an authorised medical professional
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ers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases. (e) As per sub-section (47) of section 2 of the Central Goods and Services Tax Act, exempt supply means supply of any goods or services or both which attracts ml rate of tax which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Semces Tax Act, and includes a non-taxable supply. (f) Based on the above notification, services provided by the applicant meets the requisite criteria and qualifies as health care services and hence is nil rated supply. FINDINGS & DISCUSSION: 5. We have considered the submissions made by the Applicant in their application for advance ruling as well as during the personal hearing on 09-01-2018. We have a
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from the patients, transport the samples for the relevant test, collect the test result, discuss with the ancologist and clarify the queries, based on which the ancologist recommend the treatment options to the patient. 7. Health care services provided by clinical establishments, an authorised medical practitioner or para-medics are exempted vide Sl.No.74 of the Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017. Therefore the issue/s before us to decide are a. Whether the Applicant qualifies as clinical establishment? b. Whether the services provided by the applicant qualifies to be health care services? 8. We proceed to answer the questions as under; Clause 2(s) of the Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 defines clinical establishment as under: clinical establishment3' means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatme
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cation No. 12/2017- Central Tax (Rate) dated 28th June, 2017 defines Health Care Services as under: (zg) health care services means any service by way of diagnosis or treatment or care for illness, injury deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma; 11. In the instant case the Applicant is involved in providing the services of diagnosis, pre & post counseling! therapy and prevention of diseases by providing tests that are sophisticated and relevant. The medical team of the applicant is involved in the complete cycle and hence they facilitate the diagnosis process and therefore the services provided by the applicant qu
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