Page 188 - GSTL_21st May 2020_Vol 36_Part 3

434 GST LAW TIMES [ Vol. 36
tion of an organ not restricted to blood stem cell transplantation and it is only a
preponement of such testing or diagnosis of the potential donor to obtain the
blood stem cells which is for the treatment. Other than for obtaining an organ
from a potential donor, this HLA testing is not done for any other purpose in
clinical set up and hence this is a for the treatment of an illness, the same is cov-
ered under “health care services” as per the definition given to it.
13. Regarding the issue whether the supplier of services is a clinical es-
tablishment, the term “clinical establishment” is defined in paragraph 2 of Noti-
fication No. 12/2017-Central Tax (Rate), dated 28-6-2017 as under :
“(s) “clinical establishment” means a hospital, nursing home, clinic, sana-
torium or any other institution by whatever name called, that offers ser-
vices or facilities requiring diagnosis or treatment or care for illness, injury,
deformity, abnormality or pregnancy in any recognised system of medi-
cines 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,”
It is seen that the HLA testing involves various tests which are for the identifica-
tion of the alleles of the donor cells and also the suitability of the potential donor
for treatment of a patient of illness, i.e. blood cancer and other blood disorders.
Hence any institution which does these investigative services would be covered
under the definition of “clinical establishment” as contemplated in the said defi-
nition. Hence, the LSL DE is a clinical establishment under the meaning given to
it.
14. By combined reading of the above, it is clear that the services ob-
tained by the applicant from LSL DE in the form of HLA Typing Services would
be “health care services provided by a clinical establishment”. Entry No. 77 of
Notification No. 9/2017-Integrated Tax (Rate), dated 28-6-2017 reads as under :
77. Heading 9993 Services by way of - Nil Nil
(a) health care services by a clinical
establishment, an authorised
medical practitioner or para-
medics;
(b) services provided by way of
transportation of a patient in an
ambulance, other than those
specified in (a) above.
Hence the services provided by LSL DE to the applicant in the form of HLA Typ-
ing would be covered under “Health Care Services by a Clinical Establishment”
and hence is exempt from tax under the IGST Act.
15. Entry No. 1 of Notification No. 10/2017-Integrated Tax (Rate), dat-
ed 28-6-2017 specifies that in case of any service supplied by any person who is
located in a non-taxable territory to any person other than non-taxable online
recipient, the whole of integrated tax leviable under section 5 of the said Inte-
grated Goods and Services Tax Act, shall be paid on reverse charge basis by the
recipient of the such services. In this case, the tax liability, if any, would have to
be paid by the recipient of service, i.e. the applicant. Since the service itself is ex-
empt, the applicant is not liable to pay tax on the services obtained in the form of
HLA testing and typing from LSL DE on reverse charge basis.

GST LAW TIMES  21st May 2020  188