Question ID : 40639

GST- RCM -DIRECTOR

Sir, I had posted query as to whether RCM is applicable for payments made for attending patients by a Private Ltd. Hospital to a Director who is also a director of that Company. For this I received a reply in our forum that it is applicable. But GST practitioners in other forums say that the service being Health service provided by the said doctor RCM is not applicable. Kindly explain as many hospitals would be impacted if the RCM is applicable.

Answer ID : 80492

Health care Services. No need of GST per Circular No. 32/06/2018 GST dated 12/02/208

Answer ID : 80494

In the current case the doctor who is also a director in the hospital is giving service of medical consultation to the patients of the hospital. For this he is charging his fees from the hospital. In this case RCM will not be applicable as the services provided by the person are in the capacity of the doctor and not director. The medical services is exempted and therefore no GST shall be levied.

Answer ID : 80495

Although services by directors are liable under RCM, once the said services do qualify as supply then it needs to be classified as which services are provided and the applicable rate and exemptions thereto if any. If the said services (supply) qualify for an exemption then there does not arise any question of payment of tax under forward charge or reverse charge. Health care services are exempt and hence this shall be considered as exempt services and not liable to GST. However do consider the exception of such health care services like cosmetic surgery and other which are not qualified as exempt services and liable to tax.

---