GST on collecting blood samples

[Arti Gupta]

Dear Sir,

Can anyone help me in deciding whether we have to pay GST on collecting blood samples from patients in India and providing the same to a lab in korea .But we are not a lab we are just a courier partner between a Lab in india & a Lab in korea . The korea lab will bill me and i will pay to himand then we will bill on Indian lab and they will pay us, so am I need to pay GST under RCM in this transaction. Am I need to charge GST under RCM to korea party.Kindly help us

[KASTURI SETHI]

In this scenario, two supplies are involved. These are 'Intermediary services' and 'courier services'. Both these services have nothing to do with 'health care services'. Under RCM you cannot recover from Korea lab. Under RCM liability is shifted on the service receiver. Regarding 'intermediary services' the place of supply shall be location of supplier of services under Section 13(8)(b) of IGST Act.

[Arti Gupta]

Dear Sir,

Thank you for your valuable reply.

So am I need to pay GST under RCM in this transaction when i receive a bill from korea party.

[KASTURI SETHI]

Yes. Under RCM it is your liability.

[sarojni singh]

Yes you have to pay GST.

AI Summary

Reverse charge liability for intermediary and courier services requires the Indian recipient to self-assess and pay GST on imported lab services. GST on collection-and-forwarding of blood samples involves two supplies: intermediary services and courier services, not covered by healthcare exemptions. Where a foreign laboratory supplies services and bills the Indian intermediary who then bills an Indian lab, the recipient in India must discharge GST under the reverse charge mechanism; the intermediary cannot recover that tax from the foreign supplier and must self-assess and pay GST.