Karnataka HC Extends GST Exemption to Outsourced Healthcare Services

The Karnataka High Court held that healthcare services do not lose their GST-exempt character merely because they are rendered through another hospital under a revenue-sharing arrangement. 

The Court ruled that the substance of the transaction was the provision of healthcare services to patients and not taxable business support services, with the revenue-sharing mechanism being only a mode of remuneration. 

Accordingly, the exemption under Notification No. 12/2017-CGST (Rate) was held to be available, and the show cause notices seeking GST, interest and penalty were quashed.