M/s Medivision Scan and Diagnostic Research Centre Pvt. Ltd. (“the applicant”) is engaged in diagnostic services such as clinical biochemistry, microbiology, chemotology, clinical pathology, radiology, ECG, radiometry, pulmonary function test etc. They were rendering services through qualified laboratory technicians, paramedical technicians, doctors and radiologist.
Applicant’s Interpretation of Law:
The applicant took a view that medical diagnostic service activity will not attract GST either under forward charge or reverse charge mechanism by virtue of Sl. No. 74 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017 (“Notification No. 12/2017”). Moreover, as per section 23 (1) (a) of the CGST Act, 2017 any person engaged exclusively in the business of supply goods or services or both that are not liable to tax or exempt from tax are not liable to get registration. Therefore, GST registration is not required for those persons, who are purely engaged in exempted or NIL rated supply.
Whether applicant being diagnostic service provider is liable to take registration under GST and would be covered by Exemption Notification No. 12/2017?
The Hon’ble AAR, Kerala vide Advance Ruling No. KER/41/2019 dated 12 April 2019 held that as per SRO No. 371/2017 vide serial no. 74, service covered under SAC 9993 in connection with health care by a clinical establishment, and authorized medical practitioner or paramedics is exempted. Services by way of diagnosis come under the category of health care services as per clause 2 (zg) of SRO No. 371/2017. Similarly, a clinical establishment offering services of diagnosis squarely comes under the category of clinical establishment as per clause 2(s) of SRO No. 371/2017. In the instant case, the applicant offers services such as medical diagnostic tests to facilitate diagnosis process and, therefore, the services provided by the applicant qualify as health care services and are eligible for exemption from GST.
In respect of registration, by virtue of section 23 of the CGST Act, 2017 any person engaged exclusively in the business of supplying goods or services or both, that are not liable to tax or wholly exempt from tax under the CGST Act, 2017 are not liable to take registration.
Citation:  105 taxmann.com 226 (AAAR- KERALA)