| Question And Answer | |
|---|---|
| Subject: | healthcare in gst |
| Category: | Income-Tax |
| Querist: | kollipara sundaraiah |
| Answered by: | Law Intern |
| Tags: | GST, healthcare services, manpower supply |
| Date: | May 29, 2025 |
sir,
Hospital A, have doctors as consultants, they provide this doctors to Hospital B to provide Healthcare services to Patients at Hospital B. Hospital B collects amount from patients, retain some amount balance pay to Hospital A. Hospital A then retains some amount and pay to Doctors. Is services between Hospital A and B regarded as manpower supply or healthcare. Will the gst be applicable
The question is whether the arrangement between Hospital A and Hospital B is a supply of healthcare services or a manpower supply. In my view, Hospital A facilitates the provision of doctors who deliver exempt healthcare services to patients at Hospital B and the payments (including retention by both hospitals) are part of the healthcare service charges.
If so, no GST is applicable on the services between Hospital A and Hospital B as they are covered under the exemption for healthcare services under Notification No. 12/2017-Central Tax (Rate), para 2(zg), and Entry No. 74.