2023 (1) TMI 785 - AAR - GST

Exemption from GST - HealthCare services or not - Failure to furnish details and documents - lump-sum amount received for Health care Services to be provided for 20 years by the applicant as Diamond Plan - applicability of N/N. 74 of Notification No. 12/2017- Central Tax - HELD THAT - Health care services provided by a clinical establishment, an authorized medical practitioner or para medics are exempted vide Sl. No. 74 of Notification No. 12/2017-C.T. (Rate), dated 28-6-2017. We find that the term clinical establishment' is defined under clause 2 of the Notification No. 12/2017-CT (Rate) dt.28.6.2017 means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnostics or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India or a place established as an independent entity or as a part of an establishment to carry out diagnostic or investigative services of diseases. Diamond Plan of the applicant covered more than 100 types of test, Sleep Study, Foot Scan and Naturopathy, Special health care treatments like Dental skin care treatment, Privilege card treatment, Priority OPD appointments in tie-up hospital, tele-medical guidance through application. All types of such service provided to the customer under Diamond Plan are required to be examined in detail to decide the nature and characteristic of the service to decide the taxability under GST. The applicant have also tie up with other hospital in pan India to provide the service mentioned under 'Diamond Plan' but have not submitted any documents in this regard so that we are not in position to know the Scope of Service, types of services to be provided by such Hospital and terms and conditions of the payment. Also the applicant have failed to submit the documents which contains the details of services to be provided under the 'Diamond Plan' to the potential customer. The applicant has not disclosed the correct fact/information in respect of this application therefore, in absence of such documents it is not possible to figure out the services which have mentioned in the application are covered under the Health Care Service or otherwise.

Summary

Issues Involved:
1. Whether the lump-sum amount received for Health Care Services under the "Diamond Plan" for 20 years is exempted from Goods and Services Tax (GST) as per Sr. No. 74 of Notification No. 12/2017-Central Tax.

Issue-wise Detailed Analysis:

1. Definition and Scope of Health Care Services:
The applicant, M/s. Divyajivan Healthcare Private Ltd., proposed to establish a multi-super specialty hospital and provide health care services under a "Diamond Plan," which includes various health care services for a lump-sum amount of Rs. 10 Lakhs for 20 years. The services cover hospitalization benefits, annual preventive health check-ups, advanced health check-ups, special health care treatments, and privilege card benefits.

2. Exemption under Notification No. 12/2017-Central Tax:
The applicant argued that their services fall under the definition of health care services exempted from GST as per Sr. No. 74 of Notification No. 12/2017-Central Tax. The notification exempts health care services provided by a clinical establishment, an authorized medical practitioner, or para-medics.

3. Definitions under Notification No. 12/2017-Central Tax:
- "Authorized medical practitioner" means a medical practitioner registered with any recognized system of medicines in India.
- "Clinical establishment" means a hospital, nursing home, clinic, or any institution offering services for diagnosis, treatment, or care for illness, injury, deformity, abnormality, or pregnancy.
- "Health care services" include diagnosis, treatment, or care for illness, injury, deformity, abnormality, or pregnancy, and transportation of patients but exclude cosmetic or plastic surgery unless medically necessary.

4. Applicant's Argument:
The applicant contended that their services, provided under recognized systems of medicine (Allopathy), are exempt from GST. They emphasized that preventive health check-ups and treatments offered under the Diamond Plan qualify as health care services provided by clinical establishments or authorized medical practitioners.

5. Revenue's Submission:
The Assistant Commissioner of CGST & Central Excise Commissionerate, Surat, highlighted that the notification does not specify health care services provided for a specific time period under a health benefit scheme/plan. Additionally, an amendment in Notification No. 04/2022-C.Tax (Rate) restricts exemption for room charges exceeding Rs. 5000 per day.

6. Findings of the Authority:
The Authority examined the applicant's proposal and found that the Diamond Plan includes various tests, treatments, and privilege services. However, the applicant did not provide detailed documentation regarding the nature and characteristics of the services under the Diamond Plan. The absence of such documents made it impossible to determine whether the services qualify as health care services exempt from GST.

7. Conclusion:
Due to the lack of detailed documentation and clarity on the nature of services provided under the Diamond Plan, the Authority concluded that the application was not maintainable.

Ruling:
The application of the applicant is not maintainable.