Laws and sections by number or title, due dates, pages, and updates.
Private service providers and State Governments do not pay Goods and Services Tax on ambulance transportation services provided to patients under the National Health Mission. This exemption applies under serial number 74 of notification number 12/2017-Central Tax (Rate) dated June 28, 2017. Services provided by private service providers to State Governments against consideration also remain exempt under serial number 3 as pure services, or under serial number 3A as composite supplies where the value of goods does not exceed twenty five percent of the total supply value.
Who is affected
Thresholds
Ask about this circular
Circular No. 51/25/2018-GST
F. No. 354/220/2018-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit
Room No. 146, North Block, New Delhi, 31st July, 2018
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All)
Madam/Sir,
Subject: Applicability of GST on ambulance services provided to Government by private service providers under the National Health Mission (NHM) — Reg.
I am directed to invite your attention to the Circular No. 210/2/2018- Service Tax, dated $30^{\text{th}}$ May, 2018. The said Circular has been issued in the context of service tax exemption contained in notification No. 25/2012- Service Tax dated 20.06.2012 at Sl. No. 2 and 25(a). The Circular states, inter alia, that the service of transportation in ambulance provided by State Governments and private service providers (PSPs) to patients are exempt under notification No. 25/2012- Service Tax dated 20.06.2012 and that ambulance service provided by PSPs to State Governments under National Health Mission is a service provided to Government by way of public health and hence exempted under notification No. 25/2012- Service Tax dated 20.06.2012.
| Service Tax | GST |
|---|---|
|
Sl. No. 2:
(i) Health care services by a clinical establishment, an authorized medical practitioner or para-medics; (ii) Services provided by way of transportation of a patient in an ambulance, other than those specified in (i) above. |
Sl. No. 74:
Services by way of— (a) health care services by a clinical establishment, an authorized 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. |
|
Sl. No. 25(a):
Services provided to Government, a local authority or a governmental authority by way of water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation |
Sl. No. 3:
Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. |
| [unclear in source] |
Sl. No. 3A:
Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. |
Functions of 'Health and sanitation' is entrusted to Panchayats under Article 243G of the Constitution of India read with Eleventh Schedule. Function of 'Public health' is entrusted to Municipalities under Article 243W of the Constitution read with Twelfth schedule to the Constitution. Thus ambulance services are an activity in relation to the functions entrusted to Panchayats and Municipalities under Articles 243G and 243 W of the Constitution.
In view of the above, it is clarified that the clarification contained in the Circular No. 210/2/2018- Service Tax dated $30^{\text{th}}$ May, 2018 with regard to the services provided by Government and PSPs by way of transportation of patients in an ambulance is applicable for the purpose of GST also, as the said services are specifically exempt under notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 vide Sl. No. 74.
As regards the service provided by PSPs to the State Governments by way of transportation of patients on behalf of the State Governments against consideration in the form of fee or otherwise charged from the State Government, it is clarified that the same would be exempt under-
Yours Faithfully,
(Susanta Mishra) Technical Officer (TRU) Email: susanta.mishra87@gov.in Tel: 011-23095558
Enclosure: Circular No. 210/2/2018- Service Tax (F. No. 137/51/2016- Service Tax, dated $30^{\text{th}}$ May, 2018)
Circular 210 /2 /2018-Service Tax F. No 137/51/2016 Service Tax Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs Service Tax Wing
New Delhi, the 30th May, 2018
To, All Principal Chief /Chief Commissioners of Central Excise and GST All Principal Directors General/ Directors General / Chief Commissioner AR CESTAT All Principal Commissioners/Commissioners of Central Excise & GST/AR CESTAT All Principal Additional Directors General/ Additional Directors General
Madam/Sir,
Subject: Applicability of service tax on ambulance services provided to government by private service providers under the National Health Mission (NHM)
I am directed to draw your attention to a reference of the Ministry of Health & Family Welfare, Government of India on the above subject and analyse the manner in which the taxability has to be determined in such cases.
