GST Exemption for Diagnostic Services Upheld

The case involved a diagnostic service provider, M/s. Medivision Scan and Diagnostic Research Centre Pvt. Ltd., seeking clarity on GST registration requirements and exemptions under Notification No. 12/2017-CT (Rate). The Authority for Advance Rulings determined that diagnostic services provided by clinical establishments qualify as health care services exempt from GST. The ruling emphasized that diagnostic procedures supervised by specialists in diagnostic centers are eligible for GST exemption as health care services. Consequently, diagnostic service providers exclusively offering exempt services are not mandated to register under GST, as clarified by the judgment.

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Issues:
1. Whether diagnostic service provider has to take registration under GST.
2. Whether the applicant is exempt from GST considering the exemption provided in Notification No. 12/2017-CT (Rate) dated 28-06-2017.

Issue 1: Whether diagnostic service provider has to take registration under GST.

The case involved M/s. Medivision Scan and Diagnostic Research Centre Pvt. Ltd., a clinical establishment providing diagnostic services. The applicant argued that medical diagnostic services would not attract GST as per Notification No.12/2017-Central Tax (Rate). The Authority for Advance Rulings analyzed the definitions of 'health care services' and 'clinical establishment' under the notification. It was noted that services by a clinical establishment for diagnosis fall under health care services, exempt from GST. The ruling from Karnataka further clarified that diagnostic services qualify as health care services. The diagnostic centers were described as facilities providing diagnostic procedures supervised by specialists, which are eligible for GST exemption as health care services.

Issue 2: Whether the applicant is exempt from GST considering the exemption provided in Notification No. 12/2017-CT (Rate) dated 28-06-2017.

The Authority examined the provisions of SRO.No.371/2017 under Notification No. 12/2017-CT (Rate), which exempt services by way of diagnosis under SAC 9993 in connection with health care services provided by a clinical establishment. The diagnostic services offered by the applicant were deemed to qualify as health care services, falling under the exemption category. The ruling highlighted that diagnostic procedures conducted in clinical or medical diagnostic laboratories, involving various examinations for disease diagnosis, are considered health care services eligible for GST exemption.

In conclusion, the Authority for Advance Rulings determined that diagnostic service providers engaged exclusively in supplying goods or services exempt from GST are not required to register under GST. The applicant, providing diagnostic services falling under health care services, was deemed exempt from GST as per the relevant notification. The judgment emphasized the importance of understanding the definitions and classifications of services under the GST regime to determine eligibility for exemptions accurately.

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