AAAR Gujarat dismisses appeal for service tax exemption on Diamond Plan healthcare services due to insufficient documentation

The AAAR Gujarat rejected an appeal concerning service tax exemption for a lump-sum amount received under a Diamond Plan for 20-year healthcare services. The appellant sought exemption under Sr. No. 74 of Notification No. 12/2017-Central Tax but failed to provide adequate documentation. Despite submitting limited details of the Diamond Plan and a single bill of supply, the appellant did not furnish relevant documents necessary for the authority to make a determination. The AAAR dismissed the appeal due to insufficient documentation.

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The present appeal before the Appellate Authority for Advance Ruling in Gujarat involves M/s. Divyajivan Healthcare Pvt. Ltd. ("Appellant") challenging the Advance Ruling No. GUJ/GAAR/R/01/2022 dated 07.01.2023. The main issue raised is whether the lump-sum amount received for health care services to be provided for 20 years under the "Health Care Service (Diamond Plan)" is exempt from Goods and Services Tax (GST) under Sr. No. 74 of Notification No. 12/2017-Central Tax.The Appellate Authority considered the appellant's plan, which includes various health care services for a 20-year period at a lump-sum fee. The plan covers hospitalization benefits, preventive health check-ups, advanced health check-up services, special health care treatments, and privilege card benefits. The appellant also plans to digitalize health records for easy access and provide reminders and health education tips to members.The Gujarat Authority for Advance Ruling (GAAR) initially found that the appellant had not submitted sufficient documentation regarding the nature and characteristics of the services provided under the Diamond Plan. The GAAR highlighted the lack of details on the tie-ups with other hospitals and the scope of services to be provided. Consequently, the GAAR ruled the application as not maintainable on 18.10.2021.The Appellant contested this ruling, arguing that the services offered qualify as health care services exempted under the relevant notification. They claimed to have submitted detailed information on the services under the Diamond Plan and emphasized restrictions on availing treatment outside the appellant's network.After a personal hearing on 21.01.2025, the Appellate Authority reviewed all submissions, including the appeal papers, written submissions, and the Advance Ruling. The GAAR's ruling dated 07.01.2023 was upheld due to the appellant's failure to provide the requested documents despite submitting some additional information during the appeal process. The Appellate Authority noted the incomplete set of documents and rejected the appeal on the grounds of insufficient evidence to make a decision.In conclusion, the Appellate Authority for Advance Ruling in Gujarat rejected the appeal by M/s. Divyajivan Healthcare Pvt. Ltd. against the Advance Ruling No. GUJ/GAAR/R/01/2022 dated 07.01.2023, as the appellant failed to provide the necessary documents to support their case, leading to the ruling being deemed not maintainable.

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