Goods and Services Tax – 51/25/2018 – Dated:- 31-7-2018 – Circular No. 51/25/2018-GST F. No. 354/220/2018-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit Room No. 146, North Block, New Delhi, 31st July, 2018 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Applicability of GST on ambulance services provided to Government by private service providers under the National Health Mission (NHM) – Reg. I am directed to invite your attention to the Circular No. 210/2/2018- Service Tax, dated 30th May, 2018. The said Circular has been issued in the context of service tax exemption contained in notification No. 25/2012- Service Tax dated 20.06.2012 at Sl. No. 2 and 25(a). The Circular states, inter alia, that the service of transportation in ambulance provided by State Governments and private service providers (P
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
(ii) Services provided by way of transportation of a patient in an ambulance, other than those specified in (i) above. Sl. No. 74: Services by way of- (a) health care services by a clinical establishment, an authorized medical practitioner or para-medics; (b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above. Sl. No.25(a): Services provided to Government, a local authority or a governmental authority by way of water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation Sl. No. 3: Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entr
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
cipalities under Articles 243G and 243 W of the Constitution. 4. In view of the above, it is clarified that the clarification contained in the Circular No. 210/2/2018- Service Tax dated 30th May, 2018 with regard to the services provided by Government and PSPs by way of transportation of patients in an ambulance is applicable for the purpose of GST also, as the said services are specifically exempt under notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 vide Sl. No. 74. 5. As regards the service provided by PSPs to the State Governments by way of transportation of patients on behalf of the State Governments against consideration in the form of fee or otherwise charged from the State Government, it is clarified that the same would be exempt under- a. Sl. No. 3 of notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 if it is a pure service and not a composite supply involving supply of any goods, and b. Sl. No. 3A of notification No. 12/2017- Central Tax (Rate) dated
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ectors General Madam/Sir, Subject: Applicability of service tax on ambulance services provided to government by private service providers under the National Health Mission (NHM) I am directed to draw your attention to a reference of the Ministry of Health & Family Welfare, Government of India on the above subject and analyse the manner in which the taxability has to be determined in such cases. 2. It has been stated that under the National Health Mission (NHM), a flagship programme of the Government of India, the Central Government provides technical and financial support to states to strengthen healthcare systems including for free ambulance services (Dial 102/108 services). Dial 108 is the emergency response system primarily designed to attend to patients of critical care, trauma and accident victims etc., while Dial 102 services essentially are for basic patient transport aimed to cater the needs of pregnant women and children, though other categories are also taking benefit and
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
eration will not be covered by the definition of 'service' in section 65(44) B of the Finance Act, 1994. Even if a consideration was charged, by virtue of entry 2(ii) of notification no 25/2012- Service Tax dated 20th June, 2012, services provided by way of transportation of a patient in an ambulance, other than health care services by a clinical establishment, an authorized medical practitioner or paramedics, are exempted from the whole of the service tax leviable thereon. Thus the activities provided by the State government and the PSP to patients are not leviable to service tax. 3.3 As regards the activity undertaken by the PSP for the State government for which consideration is charged, attention is invited to sl.no 25(a) of the notification no 25/2012 – Service Tax dated 20th June, 2012. The scope of the relevant exemption, in different time periods, was as follows: – In the period from 01.07.2012 to 10.07.2014 "Services provided to Government, a local authority or a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ces by the states is funded under the National Health Mission (NHM). One of the core values of the NHM enlisted by the Framework for implementation of National Health Mission (2012-2017) is to strengthen public health systems as a basis for universal access and social protection against the rising costs of health care. As a part of its goals, outcomes and strategies the framework has categorically stated that NHM will essentially focus on strengthening primary health care across the country. The Framework further states that assured free transport in the form of Emergency Response System (ERS) and Patient Transport Systems (PTS) is an essential requirement of the public hospital and one which would reduce the cost barriers to institutional care. 3.6 Thus the provision of ambulance services to State governments under the NHM is a service provided to government by way of public health and hence exempted under notification no 25/2012-Service Tax dated 20.06.2012. Your faithfully, (Pallabi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =