Government of India vide Circular No. 210 /2 /2018- Service Tax dated- May 30, 2018 has clarified that the provision of ambulance services to State governments under the National Health Mission (NHM) is a service provided to government by way of “public health” and hence exempted under Notification No. 25/2012- Service Tax, dated June 20, 2012.
The phrase “public health” is a general term and will cover a number of activities which ensure the health of the public. In the Ministry of Health & family Welfare’s reference, it has been stated that this activity of providing free ambulance services by the states is funded under the National Health Mission(NHM). One of the core values of the NHM enlisted by the Framework for implementation of National Health Mission (2012-20 17) is to strengthen public health systems as a basis for universal access and social protection against the rising costs of health care. As a part of its goals, outcomes and strategies the framework has categorically stated that NHM will essentially focus on strengthening primary health care across the country.
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