INPUT ON HUMAN HEALTH SERVICES

[knr varma]

Manufacturing Company providing emergency health services to staff at working unit, Company paying gst for above services. Company can avail input credit on health services

[Alkesh Jani]

Sir, from my point of view ITC for health service is not available in terms of Section 17(5)(b) of CGST Act, 2017. The health services has been specifically mentioned for non-availment of ITC.

[KASTURI SETHI]

Health services have been completely exempted from GST. On which input service you have paid GST ?Mention specifically.

[Alkesh Jani]

Sir, Please be kind enough to quote the authority for exemption of health service, for my knowledge purpose. Thanks in advance

[KASTURI SETHI]

Notification No.12/17-CT(Rate) dated 28.6.17 Serial No.74. Further, this exemption has been expanded in GST Council meeting held on 18.1.18.

[Alkesh Jani]

Sir, Thanks for your reply. One more request, Please let me know, where I am wrong if I interpret Noti.12/17(rate) Sl.No.74 which read as under :- Services by way of(a) health care services by a clinical establishment, an authorised 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." . In the instant case company is providing health services and is not a medical practitioner moreover, clinical establishment is required. In view of above company has to pay GST and ITC is not available. Please correct me.

[KASTURI SETHI]

Dear Querist,

Pl. see legal meaning of the terms. a clinical establishment, an authorised medical practitioner or para-medics. Concept will be clear. After looking into dictionary, if concept is not clear to you, then ask again.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Kasthuri Sethi.

[Alkesh Jani]

Sir, thanks a lot now I am clear Thanks again

[Ganeshan Kalyani]

Health service is exempted from GST.

[YAGAY and SUN]

We also endorse the view of Kasturi Sir.

AI Summary

Input tax credit on health services generally unavailable as health care services are GST-exempt or excluded from ITC entitlement.
Health care services are exempt and listed among services for which input tax credit is not available, so GST paid on emergency health services will generally not be recoverable as ITC. The exemption and ITC exclusion apply to services by a clinical establishment, an authorised medical practitioner or para-medics; if an employer's provision of health services does not fall within those supplier categories, the service may be taxable and the ITC position requires separate examination.