Composite health care plan qualifies for GST exemption where diagnosis, treatment and related care remain the essential supply

A 20-year Diamond Plan for healthcare services was treated as a composite supply of health care by a clinical establishment through an authorised medical practitioner. Preventive health check-ups, diagnosis, treatment and related care fell within the scope of health care services, and the use of tie-up hospitals for diagnostic support did not alter the essential character of the supply. On that basis, the consideration received under the plan was held exempt from GST under Sr. No. 74 of Notification No. 12/2017-Central Tax (Rate).

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Issues: Whether lump-sum consideration received for the 20-year Diamond Plan for health care services is exempt from GST under Sr. No. 74 of Notification No. 12/2017-Central Tax (Rate).

Analysis: The service was held to be a composite health care offering by a clinical establishment through an authorised medical practitioner. The plan included preventive health check-ups, diagnosis, treatment and related care, and the use of tie-up hospitals for diagnostic support did not change the essential character of the supply. The exemption applies to health care services by a clinical establishment, an authorised medical practitioner or paramedics, and the definition of health care services covers diagnosis, treatment or care in a recognised system of medicine.

Conclusion: The amount received under the Diamond Plan is exempt from GST under Sr. No. 74 of Notification No. 12/2017-Central Tax (Rate).

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