Page 6 - Ch8_ EXEMPTION

Ü Therefore, services provided in relation to preservation of stem cells by the cord blood bank operated by
Ayushman Medical Centre will be taxable from GST.

Authors Note:
Earlier services provided by cord blood bank by preservation of stem cells & services provided by operators
of the common bio medical waste treatment facility to clinical establishment was exempt but now the
exemption has withdrawn

CCP 08..02.02.01
Mr. Shyam Das was admitted to Suraksha Hospital in Mumbai for 2 days in relation to diagnosis of
removal of stones from his kidney. For the said services, Suraksha hospital charged following from

Mr. Das:
(i) Room rent ₹ 7,000 per day for 2 days.
(ii) Operation theatre charges ₹ 5,000
(iii) Doctors Consultation Charges ₹ 8,000

(iv) Other services ₹ 4,000
In each of the above scenario explain whether Suraksha Hospital should levy GST or not in line with the
relevant provisions of the GST laws. [CA Inter May 23 Exam]
Answer :-

Legal provision:
ÜHealth care services by a clinical establishment are exempt from GST.
ÜHowever, services provided by a clinical establishment by way of providing room having room charges
exceeding ₹ 5,000 per day to a person receiving health care services are not exempt.
Discussion & conclusion:

Ü In view of the same, only the room rent of ₹ 14,000 (₹ 7,000 per day × 2 days) is liable to GST.
Ü Other than room rent, all other nature of services provided by Suraksha Hospital are exempt from GST.

03. Exemptions relating to Charitable & Religious Sector:-
CCP 08.03.03.00
Services provided by an entity registered u/s 12AA or 12AB of the Income- tax Act, 1961 are exempt
from GST, if such services are provided by way of charitable activities. Elaborate the term charitable

activities'. [Study Mat] [CA Inter MTP Oct 23]
Answer:-
The term 'Charitable activities' means activities relating to:-

(i) Public health by way of-
a) care or counseling of-
† terminally ill persons or persons with severe physical or mental disability,
† persons afflicted with HIV or AIDS,
† persons addicted to a dependence-forming substance such as narcotics drugs or alcohol or

b) public awareness of preventive health, family planning or prevention of HIV infection,
(ii) Advancement of religion, spirituality or yoga,
(iii) Advancement of educational programmes/skill development relating to,-
a) Abandoned, orphaned or homeless children,

b) Physically or mentally abused and traumatized persons,

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