AAR Karnataka: Whether GST is leviable on the rent payable by a Hospital, catering life saving services?

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Applicant is a cardiology specialized hospital running on a premises taken on lease and are providing cardiology related, life saving health care services to the patients and which output services are exempt from GST.

They have also taken premises of one floor on rental basis from existing building of Mallige Hospital for heart care services only – Applicant seeks advance ruling on the question whether GST is leviable on the rent payable by a Hospital catering to life saving services.

Held: Applicant has taken the premises on lease and running exclusive heart care centre and providing health care services on commercial basis – impugned service of Rental or leasing services involving own or leased non-residential property is classified under heading SAC 997212 and is taxable under GST Further no specific exemption is available in respect of the said service under any notification for the time being in force – also there is no provision in the Act which allows exemption on an Input service if the Output service provided by the taxable person is exemptGST is, therefore, leviable on the rent paid/payable for premises taken on lease by the applicant: AAR

Citation: 2018-TIOL-35-AAR-GST