Tax Consult

No GST applicable on HLA Testing Services performed in Laboratory outside India

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The Karnataka Authority of Advance Ruling (AAR) ruled that the testing services performed by the laboratories outside India are exempted from Integrated Goods and Service Tax (IGST).

Where applicant received Human Leukocyte Antigen (HLA) Typing services from overseas laboratory involving various tests for identification of alleles of donor cells and also suitability of potential donor for treatment of patient of illness i.e. blood cancer and other blood disorders, institution which does these investigation would be covered under definition of ‘clinical establishment’, hence said services provided by foreign entity would be covered under ‘health care services by clinical establishment’ as per Entry No.77 of Notification No. 9/2017-Integrated Tax (Rate), dated 28-6-2017 and, thereby, is exempted from IGST and, accordingly, not taxable in hands of applicant under reverse charge mechanism.


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