Health Care Services Under 'Diamond Plan' Exempt from GST

The Authority for Advance Ruling determined that M/s. Divyajivan Healthcare LPP's Health Care Services under the "Diamond Plan" are exempt from Goods and Services Tax under Sr. No. 74 of Notification No. 12/2017-Central Tax. The services provided by the applicant, including hospitalization benefits, preventive health check-ups, and treatments by qualified allopathic medical practitioners, were considered as health care services by a clinical establishment, thus qualifying for the GST exemption.

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Issues:
1. Whether the lump-sum amount received for Health care Services 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.

Analysis:
The applicant, M/s. Divyajivan Healthcare LPP, proposed to establish a multi-super speciality hospital to provide health care services under the "Health Care Service (Diamond Plan)" for 20 years, charging a lump-sum amount of Rs. 10 Lakhs. The plan includes various services such as hospitalization benefits, annual preventive health check-ups, advance health check-up services, special health care treatments, and privilege card benefits. The applicant will digitalize health records for easy access and provide regular reminders and health education tips.

The applicant claimed that the health care services provided fall under Sr. No. 74 of Notification No. 12/2017-Central Tax (Rate) as services by a clinical establishment or authorized medical practitioners are exempted from GST. The applicant argued that the services provided are under recognized systems of medicines in India, particularly Allopathy, and thus qualify for exemption under the relevant notification.

The applicant further explained that the services offered, including preventive health check-ups and treatment for illnesses, are conducted by qualified allopathic medical practitioners either at the applicant's hospital or other suggested hospitals. The applicant sought an advance ruling to confirm that their services are exempted from GST under the specified notification.

After considering the applicant's submissions, the Authority for Advance Ruling found that the services provided by the applicant constitute "health care services" by a clinical establishment, as the applicant's partner is an authorized medical practitioner. The tie-up with other hospitals for diagnosis does not change the nature of the services provided by the applicant. Referring to a CBIC Circular, the Authority confirmed that healthcare services provided by clinical establishments or authorized medical practitioners are exempt from GST.

In conclusion, the Authority ruled that M/s. Divyajivan's Health care Services under the Diamond Plan are exempt from GST under Sr. No. 74 of Notification No. 12/2017-Central Tax (Rate).

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