Clinical Establishment Liable for GST on Pathology Services to Researchers

The Authority ruled that the clinical establishment is liable to pay GST on pathology or diagnostic services provided to a researcher client, as the services for academic and research purposes did not qualify as health care services for exemption. No ruling was issued on the taxability of specific actions by the applicant or services to clinical research organizations due to insufficient information provided.

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Issues Involved:
1. Liability to pay GST on pathology or diagnostic services provided to a client who is a researcher.
2. Determination of whether any specific actions by the applicant result in a taxable supply of services.
3. Assessment of whether pathology or diagnostic services supplied to a clinical research organization or government body for business activities constitute taxable services.

Analysis:

Issue 1: Liability to pay GST on pathology or diagnostic services to a researcher client
The applicant, a clinical establishment providing diagnostic services, sought an Advance Ruling on the tax liability of supplying pathology services to a client involved in research activities. The applicant claimed exemption under Notification No. 12/2017-CT (Rate) dated 28.06.2017, citing the definition of health care services. However, the Authority noted that the services provided for academic and research purposes did not meet the criteria for health care services as per the notification. The Authority concluded that the applicant is liable to pay GST on services provided to the researcher client.

Issue 2: Taxability of specific actions by the applicant
The Authority refrained from providing a ruling on whether any specific actions by the applicant resulted in a taxable supply of services due to the vagueness of the question and lack of pertinent facts on record. Consequently, the Authority did not issue a ruling on this matter.

Issue 3: Taxability of pathology or diagnostic services to clinical research organizations
Regarding the question of whether providing pathology or diagnostic services to clinical research organizations or government bodies for business activities constitutes taxable services, the Authority noted the absence of relevant details or facts in the applicant's submission. As a result, the Authority declined to issue a ruling on this question, citing the lack of specific information to make a determination.

In conclusion, the Authority ruled that the applicant is liable to pay GST on pathology or diagnostic services supplied to a researcher client. However, no ruling was provided on whether specific actions by the applicant or services provided to clinical research organizations constitute taxable supplies, due to insufficient information and clarity in the applicant's submission.

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