Health/Clinical Establishment related services under Mega exemption notification :
A. Health care services: Health care services provided BY a clinical establishment, an authorized medical practitioner or para-medics are exempt from service tax.
B. Ambulance service: Services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above are exempt from service tax.
C. Veterinary services: Services provided BY a veterinary clinic in relation to health care of animals or birds are exempt from service tax.
D. Stem cell banking services: Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation are exempt from service tax.
E. Common bio-medical waste treatment: Services provided by operators of the common bio-medical waste treatment facility to a clinical establishment by way of treatment or disposal of bio-medical waste or the processes incidental thereto are exempt from service tax.
ANALYSIS
(i) Meaning of health care services: Health care services
- means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and
- includes services by way of transportation of the patient to and from a clinical establishment, but
- does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma.
Hence, the definition of health care services is both an inclusive and exhaustive.
(ii) Only recognized systems of medicines exempt: Only services in recognized systems of medicines in India provided by the persons specified under this head are exempt. In terms of the clause (h) of section 2 of the Clinical Establishments Act, 2010, the following systems of medicines are recognized systems of medicines: –
- Allopathy
- Yoga
- Naturopathy
- Ayurveda
- Homeopathy
- Siddha
- Unani
- Any other system of medicine that may be recognized by Central Government.
(iii) Transportation of a patient to and from a clinical establishment is exempt from service tax under health care services [point A] only when the said service is provided by a clinical establishment or an authorised medical practitioner or paramedics. However, the said service provided by an entity which is not a clinical establishment or an authorised medical practitioner or paramedics is also exempt from service tax under ambulance services [point B]. In fact, under ambulance services, the said exemption has been extended to ambulance services provided by all service providers.
| 1. Authorised medical practitioner means a medical practitioner registered with any of the councils of the recognized system of medicines established or recognized by law in India and includes a medical professional having the requisite qualification to practice in any recognized system of medicines in India as per any law for the time being in force.
2. Clinical establishment means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases. 3. Para-medics are trained health care professionals, for example nursing staff, physiotherapists, technicians, lab assistants etc. Services by them in a clinical establishment would be in the capacity of employee and not provided in independent capacity and will thus be considered as services by such clinical establishment. Similar services in independent capacity are also exempted. Thus, paramedics need not be medical professionals possessing professional qualifications. |