GST on medical Services

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my clients has a private limited company whose main objective is medical consultation. The Company has two directors both of them are Doctors. They provide Consultation to patients through another hospital and the hospital pays professional fees to the Pvt. Ltd. Company. The aggregate turnover of the Company in a FY exceeds 20 lac, is it required to get GST registration ? If not, will there be any issues later on as the income is received by a private limited company that has not been formed as a hospital?

[KASTURI SETHI]

The issue is covered in the following decision of AAR :-  

2021 (2) TMI 196 - AUTHORITY FOR ADVANCE RULING, KARNATAKA - IN RE : DR. H.B. GOVARDHAN

 

[Shilpi Jain]

Important point here is that the exemption of health care services is available to a clinical establishment or authorised medical practitioner or para medics.

This will require further facts regarding the terms of the agreement, the nature of registration of the company under Shops and Establishment Act, etc.

Suggest that you consult a professional with these details to be sure and see if there is any way out in case the services are taxable.

AI Summary

GST registration for medical consultation may be required when services are supplied through a company; exemption depends on clinical establishment. Whether GST registration is required turns on turnover and whether the services qualify for the healthcare services exemption, which is limited to a clinical establishment, authorised medical practitioner or para-medics; services provided through a corporate entity that is not a recognised clinical establishment will not automatically be exempt. Assessment requires facts about the agreement, the nature of services, and the company's regulatory registration, so professional advice is recommended.