AAR: 18% GST on Regular Monitoring Services for Senior Citizens

The applicant’s provision of regular medical monitoring services and other logistical support to senior citizens at their doorstep does not qualify for exemption from the application of the Goods and Services Tax, which is subject to an 18% rate as determined by the West Bengal Authority for Advance Ruling (AAR).

The authority noted that the applicant participated in two arms of service delivery to its registered members.

The first one, which is paid for out of a consolidated package sum, includes things like a home visit from a general practitioner and a care manager for a medical checkup.

The additional portion also includes the separately paid-for services of general practitioners, nurses, and care managers.

Snehador Social & Health Care Help LLP, the applicant, is in the business of supplying elderly people with health care services. This includes setting up physicians and nurses, driving patients to diagnostic centres, giving them oxygen, and giving them physical support as necessary.

Additionally, the applicant offers its members services such as home delivery of groceries and prescription medications, assistance with bank tasks, bill payment for utilities, etc.

The question put before the bench is how much GST tax should be applied to services that are provided immediately. In addition, it will be determined if the services the applicant provides to older residents at their doorstep are within the exemption category and how those services will be classified.

The applicant said that its goal is to establish a community where senior citizens may live honourably and in both physical and mental health.

Additionally, the application offered services including organizing social gatherings and entertainment events, accompanying members on necessary social activities, and going to the bank and post office with members.

The court of Brajesh Kumar Singh and Jyojit Banik came to the conclusion that the applicant’s services qualify as “human health and social care services” and are subject to an 18% tax after carefully weighing the applicant’s arguments.

Name of the Applicant	Snehador Social & Health Care Support LLP
GSTIN	19AEGFS5054N1ZE
Case Number	WBAAR 20 of 2022
Order Number and Date	18/WBAAR/2022-23 Dated 22.12.2022
Applicant’s Representative Heard	Smt Kaushiky Gangulie, Designated Partner
WB AAR	Read Order