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GST applicability - Medical rehabilitation services

K Srinivas, CMA CS (Founder Artha Consulting Services) (5181 Points)

12 October 2021

A friend is running a medical rehabilitation center for kids with special needs. She has received a letter from GST asking her to explain why service tax /GST was not paid for the revenue received.

Please confirm:

1. Whether the medical care services as above falls under GST?

2. If yes, is there any threshold limit?

Thanks in advance

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9 Replies

Kev Men (756 Points)
Replied 12 October 2021

On a general basis, healthcare related services are exempt in GST regime. However there are some exceptions to the same. It depends on the details/facts/ nitty-gritty of each case. In my humble opinion, it is advisable to consult a tax expert instead of discussing in the forum.

Dilip Bhandarkar (Student) (55 Points)
Replied 12 October 2021

The definition of health care services does not cover services by rehabilitation centre.

However, when activities relating to 'care/counseling of persons with severe physical/mental disability' is made BY A CHARITABLE TRUST registered u/s 12AA of the income tax act 1961, it will qualify for exemption as they are specified charitable activities.

Also, rehabilitation, therapy or counseling services provided by rehabilitation professionals recognised under rehabilitation council of India Act, AT MEDICAL ESTABLISHMENTS, EDUCATIONAL INSTITUTIONS, REHABILITATION CENTERS ESTABLISHED BY CG/SG/UT OR ENTITY REGISTERED UNDER 12AA OF INCOME TAX ACT 1961, will qualify for exemption as they are covered in a different entry.

1) If your friend does not fall in any of the above categories, then services provided by her would be taxable.

2) Aggregate turnover limit for registration under GST in case of services provided from:
Manipur, Mizoram, Nagaland & Tripura- ₹10 lakhs
All states other than above- ₹20 lakhs.

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 12 October 2021

Hi Srinivas

As per serial no 74A of notification 12/2017-CTR which is the service exemption notification it seems to be exempt from GST too:

Services provided by rehabilitation professionals recognised under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961).

If not, even the person supplying the rehab services can be said to be a authorised medical practitioner exemption under serial no. 74 may be available. If values are significant and notice is issued, suggest to obtain written opinion and litigate the matter. Exemptions will be available for such activities.

Ramandeep Singh (Prop) (27 Points)
Replied 15 September 2022

I also have the same question I am a special educator registered under RCI (Rehabilation council of India) does I need to pay GST above 20 lacs receipts.No one is apple to answer my question correctly till date

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 16 September 2022

If you are covered under sl 74A or 74 of notification 12/2017-CTR then exemption is available and registration and payment of GST is not required.

Ramandeep Singh (Prop) (27 Points)
Replied 16 September 2022

Can you please share clause 74a as i resides from karnal and no one is able to clear my query here.So its my humble request to guide me in this case.I will be highly obliged if you will help me in this case.

Regards

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 16 September 2022

I am unable to share a photo or upload the PDF of the notification due to CCI restrictions.

sL 74a - EXEMPT SUPPLY - HSN 9993 - Services provided by rehabilitation professionals recognised under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961).

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 16 September 2022

Originally posted by : CA Akshay Hiregange
	Hi Srinivas As per serial no 74A of notification 12/2017-CTR which is the service exemption notification it seems to be exempt from GST too: Services provided by rehabilitation professionals recognised under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961). If not, even the person supplying the rehab services can be said to be a authorised medical practitioner exemption under serial no. 74 may be available. If values are significant and notice is issued, suggest to obtain written opinion and litigate the matter. Exemptions will be available for such activities.

Similar reply given in Oct 2021, hope you are reading entire thread. If you are still unable to figure out or have issues, please reach out to a professional or send me a mail at akshay @ hiregange.com

Ramandeep Singh (Prop) (27 Points)
Replied 26 June 2023

Respected Sirs,

I am rehabilitation professional and my service is exempt from GST as explained by all you l.I just want to know I am a youtuber as well and you tube sends me money from Singapore to my individual account so my aggregate is above 20 lacs per annum and on abroad payments I need to register for gst and need to take LUT for file a return of NIL.So i should take GST on individual name or on the name of properietship firm as services in prop firm are exempted from GST and you tube sends me payment on my individual name.Please provide appropriate answer & under which category/head in GST I will apply for GST

Regards