2019 (7) TMI 842 - AAR - GST

Classification of services - health care services - composite services - intra-state supplies - Whether the service provided by the applicant (including all incidental services) amounts to a composite service under the classification of health care services exempted under Entry No. 74 of the N/N. 12/2017-Central Tax? HELD THAT - In the instant case, the applicant provides health care services by way of appropriate diagnosis, appropriate medicines as well as relevant consumables or implants as part of treatment under supervision of qualified doctors till discharge. Therefore, medicines, implants etc. used in the course of providing health care services to in-patients is undoubtedly naturally bundled in the ordinary course of business. Hence, the stay for various treatments, supply of medicines, consumables and implants used in the course of providing health care services to in-patients for diagnosis or treatment are naturally bundled and are provided in conjunction with each other, would be considered as 'Composite Supply and eligible for exemption under the category of 'health care services .

Summary

Issues Involved:
1. Qualification as a clinical establishment
2. Classification of services as health care services exempted under Entry No. 74 of Notification No. 12/2017-Central Tax

Qualification as a Clinical Establishment:
The judgment delves into the definition of a "clinical establishment" as per the Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017. It includes hospitals, nursing homes, clinics, sanatoriums, or any institution offering services requiring diagnosis or treatment for various conditions. The applicant, a company providing health care treatment services through Ayurveda, Naturopathy, and Yoga, falls under this definition. The applicant conducts detailed consultations, assessments, therapies, and treatments under the supervision of specialized doctors, with a focus on diagnosing and treating various health issues. The judgment concludes that the applicant qualifies as a clinical establishment based on the services provided and the nature of operations.

Classification of Services as Health Care Services:
The judgment analyzes the definition of "health care services" as per the same notification, encompassing services related to the diagnosis, treatment, or care for various health conditions. It clarifies that services provided by the applicant, including diagnosis, medicines, consumables, and implants used in treatment, are naturally bundled as part of the health care services offered. The judgment acknowledges that the applicant's services constitute a "Composite Supply" eligible for exemption under the category of health care services. Consequently, the authority rules that the applicant's services qualify as health care services under Entry No. 74 of the Notification No. 12/2017-Central Tax, attracting a NIL rate of tax for intra-state supplies.

In summary, the judgment affirms that the applicant qualifies as a clinical establishment and the services provided are classified as health care services exempted under Entry No. 74 of the Notification No. 12/2017-Central Tax, attracting a NIL rate of tax for intra-state supplies.