Ganesh Medical Centre, a Multi-specialty hospital, is registered under GST law at New Delhi. It hires senior doctors and consultants independently, without entering into any employer-employee agreement with them. These d

As per Notification No. 12/2017 CT (R) dated 28.06.2017, services by way of health care services by a clinical establishment, an authorised medical practitioner or para-medics are exempt from GST. Circular No. 32/06/2018 GST dated 12.02.2018 has clarified that it can be inferred that hospitals also provide healthcare services. The entire amount charged by them from the patients including the retention money and the fee/payments made to the doctors etc., is towards the healthcare services provided by the hospitals to the patients is exempt from GST. The circular also clarified that services provided by senior doctors/consultants/ technicians hired by the hospitals, whether employees or not, are also healthcare services exempt from GST. Hence, services provided by the senior doctors and consultants hired by Ganesh Medical Centre, being healthcare services, are also exempt from GST. The circular further explained that food supplied by the hospital canteen to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare services and is not separately taxable. Moreover, Health Care Services are exempted from GST as per Notification No.12/2017-CT. Thus, it is exempt from GST. However, other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable. In view of the same, GST is not applicable on the food supplied from canteen to in-patients as advised by doctors/nutritionists while other supplies of food by it to patients (not admitted) or their attendants/visitors are taxable. Based on the legal position as clarified above, the computation of taxable value is as below: Computation of taxable Value for Doctors hired by Ganesh Medical Center S. No Particulars Amount. (Rs.) (i) Consultancy Charges paid to doctors Nil Computation of taxable Value for Ganesh Medical Center S. No. Particulars Amount. (Rs.) (ii) Amount charged from patients for point (i) above Nil (iii) Amount Charged for Canteen from in-patients as advised by the doctor/nutritionists Nil (iv) Amount Charged for Canteen for attendant (up to one person) of in-patients. 5,40,000 (v) Amount Charged for Canteen from patients (Not admitted) 60,000 Total 6,00,000