The Gujarat Authority of Advance Ruling (AAR) held that the lump-sum amount received for Health care Services to be provided for 20 years as “Diamond Plan” exempted from GST.
Facts of the case:-
The applicant, M/s. Divyajivan Healthcare LPP submitted that it proposes to establish a multi-super specialty hospital and provide health care services to patients. The applicant devised a plan, namely “Health Care Service (Diamond Plan)” for providing health care services for next 20 years for which a lump-sum amount, say, Rs. 10 Lakhs will be charged. Under the plan the services will be provided to the family i.e., Member, Spouse & up to 2 children (age below 21 years). The applicant will also tie-up with other hospitals pan India from where the members can avail health care services.
The applicant has submitted that the healthcare services provided by the applicant are in recognized systems of medicines in India which are exempted. In terms of the clause (h) of section 2 of the Clinical Establishments Act,2010, the following systems of medicines are recognized systems of medicines, viz. Allopathy, Yoga, Naturopathy, Ayurveda, Homeopathy, Siddha, Unani and any other medicine recognized by the Central Government. The applicant submits that it provides health care under the medicine system of Allopathy, that is the recognized systems of medicine in India.
The applicant has sought the advance ruling on the issue whether lump-sum amount received for Health care Services to be 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.
The coram of Sanjay Saxena and Arun Richard 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. We find 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).