QUESTION

My clients are the manufacturer and exporters registered under GST. They have availed the service from Narayana Institute of Cardiac sciences Bangalore for Covid Vaccination for their employees & their dependents. Service provider [Narayana Institute] has not charged GST in their bill. Pls advise whether GST payable by the service receiver under RCM & whether the same can be claimed as ITC.

ANSWER

FACTS OF THE CASE:
Health care services were availed by a company from Narayana Institute of Cardiac Sciences for Covid Vaccination for their employees and dependents.
The service provider has not charged GST on the same.

LAW APPLICABLE:
Serial Number 74 of Notification no. 12/2017 CGST Rate exempts the following from GST

"Services by way of-

(a) health care services by a clinical establishment, an authorised medical practitioner or para-medics;

(b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above."

INTERPRETATION:
Notification 12/2017 CGST Rate exempts the service of health care from the charge of GST and therefore the same shall not be charged either on forward charge basis or reverse charge basis.

CONCLUSION:
Health care service by a clinical establishment is exempt and GST shall not be charged on FCM or RCM basis. (Reply dt. 13/08/2021)