Page 183 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : DKMS BMST FOUNDATION INDIA 429
“(zg) “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 affect-
ed due to congenital defects, developmental abnormalities, injury or trau-
ma.
(s) “clinical establishment” means a hospital, nursing home, clinic, sanato-
rium or any other institution by whatever name called, that offers services
or facilities requiring diagnosis or treatment or care for illness, injury, de-
formity, abnormality or pregnancy in any recognised system of medicines
in India, or a place established as an independent entity or a part of an es-
tablishment to carry out diagnostic or investigative services of diseases;”
Hence the services by way of treatment or care for illness, injury, deformity, ab-
normality are covered under “health care services”. Also, hospitals, clinic, sana-
torium or any other institution by whatever name called that offers services or
facilities requiring treatment or care for illness, injury, deformity, abnormality is
covered under “clinical establishment”.
6.3 In the instant case, the applicant states, LSL DE, Germany conducts
the tests to identify and list potential donors which, as explained above, is an
integral step in the entire process of treatment of an illness, injury, deformity,
abnormality i.e. blood cancer and other blood disorders. The said laboratory tests
the HLA of the samples provided for various potential donors under the Allopa-
thy system of medicine in India. Given that without this test, the donation and
therefore the treatment of illness would not be possible, hence the said HLA typ-
ing service providing by LSL DE would be classifiable as health care services.
6.4 Further, as the laboratory in the instant case offers services requir-
ing treatment for an illness, injury, deformity, abnormality under the allopathy
system of medicines, recognised system of medicines in India, therefore, the said
laboratory would qualify as a clinical establishment as per the definition provid-
ed in the GST Law.
6.5 The applicant also contends that the definition of “health care ser-
vices” has been kept wide and does not specifically restrict any activity apart
from certain exclusion, thereby extending the benefit of exemption for overall
healthcare activities.
6.6 The applicant contends that since the said service of HLA typing
would qualify as health care services provided by clinical establishment and
hence exempted from taxes leviable thereon, the applicant shall not be required
to pay taxes under reverse charge mechanism for services provided by overseas
laboratory.
6.7 The applicant draws the attention to the ruling of this authority in
the case of Sayre Therapeutics Private Limited and Matrix Imaging Solutions
India Private Limited in support of his claim. He also draws reference to the fol-
lowing cases related to Service Tax era in support of his claim :
(a) Aditya Surgical Co. v. State of Karnataka [2018 (10) G.S.T.L. 284 (Kar.)]
(b) Dr. Reddy’s Laboratories Ltd. v CCE & C [2008 (232) E.L.T. 819 (Tri. -
Bang.)
(c) Flex Engineering Ltd. v. Commissioner of Central Excise, U.P. [2012
(276) E.L.T. 153 (S.C.)]
GST LAW TIMES  21st May 2020  183