This discussion clarifies whether a hospital, despite its own services being exempt from GST, can claim Input Tax Credit (ITC) on services it receives where the Reverse Charge Mechanism (RCM) applies. The consensus is that because the hospital's primary services are exempt, it cannot claim ITC on RCM paid.
18 December 2022
A hospital provides services to patients that are exempted from paying tax as per the GST Act. However, the hospital is paying RCM on certain services that are received by them. We really doubt whether the hospital can take the ITC on RCM Paid.