2021 (12) TMI 111 - AAR - GST

Exemption from GST - lump-sum amount received for Health care Services to be provided for 20 years by the applicant as Diamond Plan - Applicability of Sr. No. 74 of Notification No. 12/2017- Central Tax. - HELD THAT - The scope of supply of services by the applicant is health care services by a clinical establishment and also that the applicant s Partner Dr. P.G.Korodia is an authorised medical practitioner. The subject consideration is received for health care services. Further applicant s tie up with the other hospital for diagnosis does not alter the scope of supply of health care services by the applicant to its service recipients. M/s Divyajivan supplies Health care Services under Diamond Plan which merits exemption from GST vide Sr. No. 74 of said Notification No. 12/2017- CT(R).

Summary

Issues:
1. Whether the lump-sum amount received for Health care Services provided for 20 years by the applicant as "Diamond Plan" is exempted from Goods and Services Tax as per Sr. No. 74 of Notification No. 12/2017- Central Tax.

Analysis:
The applicant, M/s. Divyajivan Healthcare LPP, proposed to establish a multi-super speciality hospital to provide health care services under the "Health Care Service (Diamond Plan)" for 20 years, charging a lump-sum amount of ?10 Lakhs. The plan includes various services such as hospitalization benefits, annual preventive health check-ups, advance health check-up services, special health care treatments, and privilege card benefits. The applicant will digitalize health records for easy access and provide regular reminders and health education tips.

The applicant claimed that the health care services provided fall under Sr. No. 74 of Notification No. 12/2017-Central Tax (Rate) as services by a clinical establishment or authorized medical practitioners are exempted from GST. The applicant argued that the services provided are under recognized systems of medicines in India, particularly Allopathy, and thus qualify for exemption under the relevant notification.

The applicant further explained that the services offered, including preventive health check-ups and treatment for illnesses, are conducted by qualified allopathic medical practitioners either at the applicant's hospital or other suggested hospitals. The applicant sought an advance ruling to confirm that their services are exempted from GST under the specified notification.

After considering the applicant's submissions, the Authority for Advance Ruling found that the services provided by the applicant constitute "health care services" by a clinical establishment, as the applicant's partner is an authorized medical practitioner. The tie-up with other hospitals for diagnosis does not change the nature of the services provided by the applicant. Referring to a CBIC Circular, the Authority confirmed that healthcare services provided by clinical establishments or authorized medical practitioners are exempt from GST.

In conclusion, the Authority ruled that M/s. Divyajivan's Health care Services under the Diamond Plan are exempt from GST under Sr. No. 74 of Notification No. 12/2017-Central Tax (Rate).