GST on covid 19 test

[POLYPLEX CORPORATIONLTD]

Dear Sir

Is GST is applicable on COVID 19 Test of employees by Path Labs?

If yes, whether credit is eligible?

Regards

S Bansal

[KASTURI SETHI]

In my view, exemption is available under the 'Heath Care Services' (s) Para 2(zg) of Notification No.9/17-IT(R) dated 28.6.17 refers.

“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;

See Notification No.9/17-IT(R) dated 28.6.17 under Serial No.2(s) of Definition in the Notification.

[YAGAY and SUN]

Howevere if GST is being charged then it can be available for ITC as per the MHA Guidelines.

[Rajesh S]

Hi Sir,

If a company tie up with diagnostics (3rd party) centers and providing Health care services to corporate and individuals like:- (Covid test and Doctor consultation).

is that company liabile to charge GST or is It exempt under health care service??

[KASTURI SETHI]

Sh. Rajesh S Ji,

In my view it is taxable.

However, on this issue, there are two contradictory decisions of AAR which are given below:

2019 (23) G.S.T.L. 509 (A.A.R. - GST) = 2019 (4) TMI 303 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH IN RE : J.C. GENETIC INDIA PVT. LTD.

2019 (30) G.S.T.L. 257 (A.A.R. - GST) = 2019 (10) TMI 1019 - AUTHORITY FOR ADVANCE RULING, KARNATAKA IN RE : MATRIX IMAGING SOLUTIONS INDIA PVT. LTD.

AI Summary

GST on COVID testing: taxability hinges on classification as exempt healthcare service; input tax credit may apply. Whether GST applies to COVID testing by diagnostic laboratories depends on whether the service qualifies as a healthcare service exempt for services provided by a clinical establishment. If GST is charged, input tax credit may be available under government guidelines. Corporate arrangements using third party diagnostic centres are viewed by some as taxable. The document records conflicting Advance Ruling decisions on the taxability of diagnostic services, reflecting divergent administrative approaches.