Medical Doctor Liable for GST Registration under CGST Act: Exemptions for Foreign Services

The ruling confirmed that the applicant, a medical doctor, is liable for GST registration under the CGST Act, subject to turnover limits. Services provided to foreign entities for diagnosis and treatment are exempt from GST, while business promotion services rendered are taxable. Health care services provided in India are also exempt from GST.

---

---

Issues Involved:

1. Eligibility for GST registration.
2. Tax liability on services rendered to foreign entities (Hospitals/Laboratories/Biobanks in the USA and other countries).
3. Tax liability on Health Care Services rendered in India.

Issue-wise Detailed Analysis:

1. Eligibility for GST Registration:

The applicant, a medical doctor, provides health care services in India and consultancy services to foreign entities. The ruling confirms that the applicant is liable for GST registration under Section 22(1) of the CGST Act, 2017, subject to the threshold limit of turnover. The applicant is already registered under the CGST Act and KGST Act.

2. Tax Liability on Services Rendered to Foreign Entities:

The applicant provides two types of services to foreign entities:

- Consultation Services in Diagnosis and Treatment of Illness: These services are exempt from GST under Entry No. 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as they qualify as "health care services" provided by a clinical establishment.

- Business Promotion Services: These services, including organizing collaborative projects and business development for foreign companies, are classified as Business Promotion Services (SAC 9983). The applicant acts as an intermediary, facilitating services between foreign companies and Indian clinical centers. As per Section 13(8) of the IGST Act, 2017, the place of supply for intermediary services is the location of the supplier (India). Therefore, these services are taxable under GST and do not qualify as "export of services" because the place of supply is in India.

3. Tax Liability on Health Care Services Rendered in India:

The diagnostic and treatment services provided by the applicant in India are exempt from GST under Entry No. 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. This exemption applies to health care services offered by a clinical establishment, authorized medical practitioner, or paramedics.

Ruling:

1. The applicant is liable for registration under the GST Acts.
2. There is no tax liability on diagnostic and treatment services rendered to foreign entities (Hospitals/Laboratories/Biobanks in the USA and other countries). However, business promotion services rendered as per the contract are taxable under GST.
3. Diagnostic and treatment services, as well as part-time medical services provided in India, are exempt from GST.

---