Revers charge in GST

[mk Jain]

We have given the monthly fix amount contract to doctor for medical services in our company

Is any revers charge applicable in GST.

Rgds,

MJ

[KASTURI SETHI]

Health care services have been exempted vide entry No. 77 in Notification No. 9/2017-intergrated tax (Rate) dated 28.06.2017 .

" Services by way of health care services by a clinical establishment, an authorised medical practitioner or para-medics."

(s) “clinical establishment” means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers 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;

Health care service provided by Dr. in your company is exempted. Hence RCM is not applicable.

[MUKUND THAKKAR]

Rightly explain by Shree kasturiji...

[RAJIV PATEL]

Dear Sir,

May we request you to kindly advice & guide us on the applicability of GST & RCM on our case. Your comment & support will be highly appreciated.

Stage 1 - We are presently buying hotel & transport from Bhutan. The Bhutan operator does not charge any GST as it does not fall in Indian tax jurisdiction. Hence let take our purchase price as INR 100

Stage 2 – Now when we sale the package to X agency in Indian then we bill the agency with GST of 5%.

Here our sale become our Bhutan Purchase INR 100 + Our markup 10 (100 + markup 10 ) + GST of 5% on 110 +5% GST = INR 115.50

Comments required

• Are the above transaction fine as per the current GST procedure
• Do we need to charge RCM of 5% on our purchase price from Bhutan i.e 100
• In case we charge RCM then our tax components become 10%
• Will we get input credit for paying the RCM for oversea supplier who is not part of Indian tax jurisdiction.
• In case we don’t get input credit then our product become 10% higher in compare to any direct supplier from Bhutan to come to india and lock in business. Anyway we are already higher by 5% as we are paying GST of 5% hence RCM will become a extra loading for us.

Your comment & advice will be highly appreciated

Regards

Bijay Mishra

[DR.MARIAPPAN GOVINDARAJAN]

Sir,

If you have a query post the same separately. Don't club it with the query of another. It will create confusion.

[KASTURI SETHI]

Rightly advised by Sh. M. Govindarajan, Sir. To post question into another's query creates problem not only for experts but also for the other visitors of the same query. Wrong message can reach the visitors.

AI Summary

Reverse charge not applicable where healthcare services by clinical establishment or authorised practitioner are GST exempt. Health care services rendered by a clinical establishment, an authorised medical practitioner or para medics are exempt under the GST rate notification; therefore medical services supplied by a doctor to the company are exempt and the reverse charge mechanism is not applicable. Separate queries about reverse charge and input tax credit for services procured from a non Indian supplier were raised but not resolved.