GST – AAR Haryana – Outsourcing of human resources, including doctors, nurses, and other staff by applicant to clinical establishment is not exempt under “Healthcare Service”; Health care exemption is available only when the clinical establishment itself provides the service to the in-patients as well as out-patients and the same is not available when services are provided by a third party as a contractual arrangement [Order attached]
Parties – M/s ARPK Healthcare Private Limited
- The Applicant, M/s ARPK Healthcare Private Limited, is providing healthcare services to patients of M/s Asian Institute of Medical Science, Faridabad.
- The Applicant is planning to enter into a contract with M/s Asian Hospital Pvt. Ltd. to supply human resources, including doctors, nurses, and other staff, for the gastroenterology department of the recipient.
- The charges for healthcare services will be paid by patients to M/s Asian, who will pay the applicant for the services rendered.
- The Applicant submitted that these charges will not be liable for GST as they are exempted from the levy of GST under entry number 74 of Notification No. 12/2017 -CENTRAL TAX (RATE) Dt 28/06/2017.
- Whether Fee/ charges received by the applicant from M/s Asian Hospital is exempted under the provisions of the GST Act?
- Whether Fee/charges for Health Care Services received by M/s Asian is exempted under the provisions of the GST Act, 2017?
- The authorities observed that the contract between M/s ARPK and M/s Asian Healthcare Pvt. Ltd. to supply human resources personnel services is a taxable event and not covered under exemption notification no. 12/2017-CT (R) dated 28 June 2017.
- Although M/s Asian Hospital Private Ltd. provides healthcare services to patients through the doctors hired or outsourced by M/s ARPK, the outsourcing of infrastructure by M/s Asian Hospital to M/s ARPK Healthcare Private Ltd. is not covered under the definition of "Healthcare Service" under the notification.
- The exemption claimed by the applicant is available under the notification only when the clinical establishment itself provides this service (treatment related to gastroenterological problems) as a part of health care services to in-patients and out-patients and the same is not available when such supply of services provided by a third party as a contractual arrangement.
- In view of the same, the fee/ charges received by the applicant from M/s Asian is not exempt under GST.
- Further, fee/ charges for health care services received by M/s Asian is exempt except for the services mentioned under heading 9993 clause no. 31A vide notification no. 03/2022 – CT(R) dated 13.07.2022.