TaxTMI 
TaxTMI 
2026 (3) TMI 1673
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....d, Haridwar, Uttarakhand-249402. (herein after referred to as the "applicant") and registered with GSTIN 05AAFFI9899G1ZS under the CGST Act, 2017 read with the provisions of the UKGST Act, 2017. 2. At the outset, we would like to state that the provisions of both the CGST Act and the SGST Act are the same except for certain provisions; therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the SGST Act. 3. The Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 4. As per the said sub-section (2) of Section 97 of the Act advance ruling can be sought by an applicant in respect of: (a) Classification of any goods or services or both (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or....
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....e services to citizens free of cost, constitutes exempt "healthcare services by a clinical establishment" under Entry 74 of Notification No. 12/2017-Central Tax (Rate)? 2. Whether, in the alternative, the said activities qualify as "pure services" provided to the State Government (through its designated PSU executing agency under formal MoU) in relation to Article 243W functions (public health, hospitals, dispensaries-Twelfth Schedule Entries 6, 8, 23), and are therefore exempt under Entry 3 of Notification No. 12/2017-Central Tax (Rate)? APPLICANT SUBMISSION 5.3 In their application the applicant have made the following submissions to forward their point of view:- i. The Applicant, M/s Indovation Healthcare LLP, is engaged in the operation and management of Government-owned Urban Health & Wellness Centres (UHWC)/Ayushman Arogya Mandirs and Polyclinics in the State of Uttarakhand under a public health programme funded through grants released on the recommendations of the 15th Finance Commission. ii. The said healthcare facilities are part of the Government's public healthcare infrastructure and are owned by the Government. The Applicant does not....
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....he Applicant under the said public health programme. x. The Applicant submits that the activities undertaken by it under the operation and management agreements relate exclusively to the delivery of healthcare services through Government-owned Urban Health & Wellness Centres/Polyclinics, in accordance with Government-prescribed norms and guidelines. The Applicant functions as a clinical establishment providing diagnosis, treatment, prevention and management of illness through qualified medical practitioners and paramedical staff, and does not undertake any independent or commercial activity. xi. The Applicant's services constitute healthcare services as defined and exempted under Entry 74 of Notification No. 12/2017-Central Tax (Rate). The various elements involved in the activity, such as deployment of medical and paramedical personnel, diagnostics, pharmacy services and operational support, are naturally bundled and ancillary to the principal supply of healthcare services, and therefore constitute a composite supply with healthcare as the principal supply. xii. Without prejudice to the above, the Applicant submits that the services are provided unde....
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....ector Undertaking (PSU) for implementation of the scheme relating to establishment, operation and monitoring of 115 Urban Health and Wellness Centres (UHWC) and 23 Polyclinics in Gharwal region UHWC-Part-01, State Uttarakhand across the State with total estimated project cost of Rs.81.57 Crores and the contract price means final price, inclusive of all freight, centage, applicable GST and taxes payable. As per the said agreement, the M/s BRAITHWAITE & CO. LIMITED has been appointed as the executing agency and is responsible for ensuring that each health center is equipped with the necessary infrastructure, human resources and operational facilities for delivery of healthcare services. Subsequently, M/s BRAITHWAITE & CO. LIMITED has entered into a separate agreement with the applicant i.e. M/s Indovation Healthcare LLP, appointing it as the operating agency for implementing, operating and monitoring of the 49 Urban Health and Wellness Centres (UHWC) and 10 Polyclinics in Gharwal region UHWC-Part-01, State Uttarakhand with estimated project cost of Rs.31.28 Crores (inclusive of all expenses and GST as applicable). 8.2 Legal Position 8.2.1 Entry 74 of Notification No. 12/2017-CT....
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....rmality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma; 8.3.2 The relevant provisions of the CGST Act, 2017 related to "consideration" and "recipient" read as under:- (31) "consideration" in relation to the supply of goods or services or both includes - (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; (93) "recipient" of supply of goods or services or both, means- (a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration; 8.3.3 The agreements on record reveal that the applicant is....
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....tivity is specific and is intended to cover the actual provision of healthcare services by the clinical establishment itself to patients. In the present case, the applicant i.e. M/s INDOVATION HEALTH CARE LLP is merely the owner implementing agency engaged for operation and management of Government Health Care Centres under an Agreement with M/s BRAITHWAITE & CO. LIMITED, which in turn has been entrusted by the State Government with the implementation, establishment, operation and monitoring of the healthcare scheme. Therefore, the services supplied by applicant are in the nature of contractual operational, managerial and administrative services provided to M/s BRAITHWAITE & CO. LIMITED, and not the provision of healthcare services by a clinical establishment. Consequently, the applicant cannot be regarded as the supplier of exempt healthcare services under Entry 74 of the said notification, and the exemption available to a clinical establishment providing healthcare services cannot be extended to the applicant merely on account of its role in operating or managing such centres on behalf of M/s BRAITHWAITE & CO. LIMITED under a contractual arrangement. 8.3.7 It is also pertinent....
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....i. supply of services by M/s BRAITHWAITE & CO. LIMITED to the URBAN DEVELOPMENT DIRECTORATE, Government of Uttarakhand under the implementation agreement. 8.4.3 We have also gone through the Memorandum of Understanding dated 30.05.2025 entered into by the Urban Development Directorate, Govt. of Uttarakhand and the main contractor (M/s Braithwaite & Co. Limited) and observe that at point 12 therein the engagement of a THIRD PARTY by the main contractor (also referred to as the SECOND PARTY in the said MOU) for implementing and monitoring of the project is permissible. The said Para reads as under:- 12. If the SECOND PARTY engages any THIRD PARTY for implementation and monitoring of the project, the agreement signed between SECOND PARTY and THIRD PARTY, the THIRD PARTY should not have any condition which may create additional liability on Director, URBAN DEVELOPMENT DIRECTORATE, Government of Uttarakhand having its Registered Office at 31/62 Rajpur Road, Dehradun, Uttarakhand-248001(FIRST PARTY). Thus, we find that it is apparent that the applicant has acted as a sub-contractor in the entire scheme of things and has provided the services to the main contractor (M/s Bra....