This circular provides clarification on the applicability of GST on ambulance services provided by private service providers to the Government under the National Health Mission (NHM).

The circular explains that ambulance services, whether provided directly by the Government or through private service providers, are part of public health functions entrusted to Panchayats and Municipalities under Articles 243G and 243W of the Constitution. Such services were earlier exempt under the service tax regime and the same exemptions have been carried forward under GST through Notification No. 12/2017–Central Tax (Rate).

It is clarified that transportation of patients in ambulances is specifically exempt from GST under GST law. Further, where private service providers render ambulance services to State Governments under NHM against consideration, such services qualify as services provided to Government by way of public health and are exempt from GST, provided they are in the nature of pure services. Even where the supply is a composite supply involving goods, the exemption will continue to apply if the value of goods does not exceed 25% of the total value of supply.

Accordingly, ambulance services provided by private service providers to State Governments under NHM, whether as pure services or eligible composite supplies, are not liable to GST. Any difficulty in implementation may be referred to the Board.