My Client is Partnership Firm running a hospital and being health service provider it service is exempt from GST so Registration is not taken though receipt is more than 20.00 Lacs. Now he is giving ambulance to a company on hire fixed monthly charges, where fuel cost will be born by the company but driver is provided by Hospital and maintenance is to be done by hospital Whether this service cover in RCM if not than at what rate GST to be charged and what is SAC code

Reply- As per circular no.51/25/2018 dated 31.07.2018, Ambulance services are an activity in relation to the functions entrusted to Panchayats and Municipalities under Articles 243G and 243W of the Constitution.

The service provided by Government and private service providers by way of transportation of patients in an Ambulance is specifically exempt under notification No.12/2017- Central Tax (Rate) dated 28.06.2017 vide Sl. No. 74. SAC code is 9993.

Service by way of giving ambulance on hire basis in not covered in above exemption, it will be covered under service provided by way of renting of any motor vehicle designed to carry passengers. RCM will not applicable as cost of fuel is not included in the consideration charged from the service recipient. Tax rate will be 18% (Sr. 10(iii) of Notification no. 11/2017-Central Tax (Rate) Dated: June 28, 2017) under SAC 9966.