ALCON RESORT HOLDINGS PVT. LTD. 2019 (27) G.S.T.L. 293 (A.A.R.

PJ/Case Law/2019-2020/3538

ALCON RESORT HOLDINGS PVT. LTD. 2019 (27) G.S.T.L. 293 (A.A.R. - GST)

Case: ALCON RESORT HOLDINGS PVT. LTD.

Citation: 2019 (27) G.S.T.L. 293 (A.A.R. - GST)

Issue: (a) Whether the applicant qualifies as a clinical establishment?

(b)Whether the incidental services provided by the applicant qualify for exemption under Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017to be health care services?

Brief Facts: The applicant is having an established Centre for providing health care treatment services to the patients through Ayurveda, Naturopathy and Yoga. The applicant provides multiple services like supply of medicines, consumables, implants used in providing health care services along with stay to patients for various treatments.

Respondent’s contention and judgment:

The detailed analysis of definition of clinical establishment and health care services as per the GST Act; it is clearly visible that the applicant qualifies to be a clinical establishment and the services offered/provided by the applicant qualify to be Health Care Services.

We are hereby reproducing the said definitions for your reference.

Clause 2(s) of the Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017, “clinical establishment” means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis 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 a part of an establishment to carry out diagnostic or investigative services of diseases.

Clause 2(zg) of the Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017 defines “Health Care Services” as under:

(zg)”health care services” means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma.

Decision: In favor of assessee

This ruling states that 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”.

For knowledge purpose-

In re ‘Starcare Hospital Kozhikodi Private Limited’ – 2019 (5) TMI 901 - AUTHORITY FOR ADVANCE RULINGS, KERALA and in re ‘Kindorama Health Care Private Limited’ – 2019 (5) TMI 960 - AUTHORITY FOR ADVANCE RULINGS, KERALA the Authority for Advance Ruling held that the medicines, consumables, room rent, nursing charges, doctor’ fees etc., supplied to in-patients which are given to the patients and the patients are under continuous monitoring and nursing staff to control administration and dosage of medicines, are given in a single bundle and charged in a single invoice. The entire supply squarely covered under composite supply with health care services as principal supply. The exemption is available from GST under Sr. No. 74 of Notification No. 12/2017-CT (Rate), dated 28.06.2017.

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PJ/Case Law/2019-2020/3538

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