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

Medical Consultation Firm Challenges GST Registration Requirement; Seeks Clarity on Healthcare Service Exemption and Ruling Implications A private limited company providing medical consultation through another hospital is questioning the need for GST registration, given its annual turnover exceeds 20 lakhs. The company, run by two doctor-directors, receives professional fees from the hospital. One response references a decision by the Authority for Advance Ruling in Karnataka, suggesting the issue is covered under a specific ruling. Another response highlights that healthcare service exemptions apply to clinical establishments or authorized medical practitioners, recommending a detailed review of the company's registration and agreements to determine tax obligations and potential solutions.