CBIC has issued a circular for clarification about GST applicability/ exemption in respect of Ambulance Service provided by Private Service Providers to the Central/ State Govt., for transportation of patients under the National Health Mission (NHM), as under:
GST Exemption for Ambulance Service: CBIC Clarification Circular No. 51/25/2018 GST dt. 31 July 2018
Functions of ‘Health and sanitation’ is entrusted to Panchayats under Article 243G of the Constitution of India read with Eleventh Schedule. Function of ‘Public health’ is entrusted to Municipalities under Article 243W of the Constitution read with Twelfth schedule to the Constitution. Thus ambulance services are an activity in relation to the functions entrusted to Panchayats and Municipalities under Articles 243G and 243 W of the Constitution.
CBIC has reiterated that the clarification contained in Circular No. 210/2/2018-Service Tax dt. 30th May, 2018 regarding services provided by Government and PSPs by way of transportation of patients in an ambulance is applicable for the purpose of GST also, as the said services are specifically exempt under notification No. 12/2017-Central Tax (Rate) dt. 28.06.2017 vide Sl. No. 74.
As regards the service provided by PSPs to the State Governments by way of transportation of patients on behalf of the State Governments against consideration in the form of fee or otherwise charged from the State Government, it is clarified that the same would be exempt under-
a) Sl. No. 3 of notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 if it is a pure service and not a composite supply involving supply of any goods, and
b) Sl. No. 3A of notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 if it is a composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply.