2023 (1) TMI 80 - AAR - GST

Exemption from GST - Healthcare services - regular medical monitoring along with other logistic support as provided by the applicant to senior citizens at their door step - classification of services - rate of tax - HELD THAT - The applicant is found to be engaged in providing services to its enrolled members under two limbs. The first one, which is against a consolidated package amount, comprises inter alia of care manager visit for medical check-up, general physician home visit and home delivery of medicine. The other part also covers services by general physicians, nurses and care managers for which the applicant charges separately. The aforesaid services may get covered under health care services as defined in Para 2 (zg) of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017. However, supply by way of health care services qualifies for exemption under serial number 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 if the same is provided by a clinical establishment, an authorised medical practitioner or para-medics - Admittedly, the applicant doesn t fall under any of the aforesaid categories of suppliers and the services provided by the applicant, therefore, fail to qualify as exempted service. Rate of tax on the instant supply of services - HELD THAT - The applicant provides services for accompanying members for essential social outings, accompanying member to the Bank Post Office, organising social gathering and entertainment programmes etc. Thus, the services provided by the applicant can be termed as human health and social care services and is taxable @ 18% vide serial number 31 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 corresponding West Bengal State Notification No.1135 F.T. dated 28.06.2017 , as amended.

Summary

Issues:
1. Whether services provided for health care to senior citizens at their doorstep qualify for exemption under GST?
2. What is the classification of such services?
3. If the services are taxable, what would be the applicable tax rate?

Analysis:
1. The applicant sought an advance ruling on whether the services provided for health care to senior citizens at their doorstep qualify for exemption under GST. The applicant runs a membership program offering various services like arranging doctors, nurses, diagnostic center visits, oxygen supply, and physical support. Additionally, services include delivery of medicines, grocery items, assistance with bank work, and utility bill payments. The Revenue raised no objection to the application, which was admitted for consideration.

2. The applicant, a start-up LLP, launched an eldercare program providing services to senior citizens living alone. Services are categorized into regular medical monitoring and logistic support. The applicant employs paramedics, physiotherapists, phlebotomists, and home counselors for medical needs. The applicant argued that similar services provided individually are exempt from GST, and hence, services to senior citizens should also be exempt.

3. The Revenue did not provide a view on the issue raised by the applicant. The Authority observed that the applicant offers services under different packages involving medical care, logistical support, assistance in daily living, and health care services at home. The applicant charges separately for additional services beyond the package. The Authority analyzed the relevant exemption notification and found that the services provided by the applicant do not qualify as exempted services under the specified categories.

4. The Authority determined that the services provided by the applicant, including regular medical monitoring and logistic support to senior citizens, do not qualify for exemption under GST. The services were classified as 'human health and social care services' taxable at 18% under the relevant notification. Therefore, the ruling concluded that the services are liable to tax at the rate of 18%.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved, the arguments presented by the applicant and the Revenue, and the final ruling by the Authority regarding the taxability of the services provided for health care to senior citizens at their doorstep.