Whether Counselling service is exempt or taxable service in GST?

[V Rajalakshmi]

The company engages PHD holders of Psychology to provide counseling to employees of its customer. The Beneficiaries are the employees who are facing mental challenges like parenting managing relationships, stress management, and work-life balance, etc. The query is whether the counseling service provided by the company will fall under exempted service if so under what category?

[Ganeshan Kalyani]

As per entry no. 74 of Notification No. 12/2017- Central Tax (Rate), Services by way of-

(a) health care services by a clinical establishment, an authorised medical practitioner or para-medics;

is exempt.

[KASTURI SETHI]

Dear Sir,

Pl. go through Circular No. 32/06/2018-GST, dated 12-2-2018 (serial no.5) which is very much clear and also the following decision of AAR Gujarat which is partly in favour of the assessee for further penetration into the issue :-

2021 (3) TMI 547 - AUTHORITY FOR ADVANCE RULING, GUJARAT - IN RE : BARODA MEDICARE PVT. LTD.

AI Summary

Health care services exemption may apply to counselling services for employees under GST, subject to clinical establishment criteria. Whether counselling by a company employing PhD psychologists to employees is exempt hinges on Entry No. 74 of Notification No. 12/2017-Central Tax (Rate), which exempts services by way of health care services by a clinical establishment, an authorised medical practitioner or para-medics; applicability is further informed by Circular No. 32/06/2018-GST (serial no.5) and an Authority for Advance Ruling that examined similar counselling services.