The Gujarat Appellate Authority of Advance Ruling (AAAR) consisting of Seema Arora and Milind Torawane held that there should be no GST subjected to furnished on the occupational health check-up service by the hospital as it comes beneath the health care services.
The appellant, M/s. Baroda Medicare Private Limited is running 3 multi-speciality hospitals under the brand name “Sunshine Global Hospitals’ at Manjalpur, Vadodara, and Surat.
The hospital asked for an advance ruling if the supply of medicines, surgical items, implants, consumables, and the additional allied services and items furnished via hospital by their hospital in house pharmacy comes beneath the composite supply of health care treatment and hence does not being come to tax beneath CGST/SGST.
An additional issue raised was if the supply of the occupational health check-up (OHC) services via hospital to their employees and indeed the camp’s services made towards health check-ups outside hospitals must come under healthcare services and thus not taxable under CGST/SGST.
The AAR specified that the supply of medicines, surgical items, implants, consumables, and the additionally allied items given by the hospital via their hospital in house pharmacy for furnishing the health care services and the supply of food and the room on rent to in-patients admitted to the hospitals for diagnosis, medical treatment, or methods, is a composite supply of In-Patient Healthcare Service and hence not taxable under CGST / SGST.
AAR held that the hospital should furnish 18% GST on the payment obtained directly from the business entity for the health services furnished to the business entity employees for the occupational health check-up (OHC).
The petitioner pleaded with respect to the AARs order. The petitioner submitted that some of the risks are mutual for all the industries, such as hazardous substances, dust, machinery-related accidents, trips, and falls, physically demanding work, heat and cold, and others. For preventing any accident get the safety measures and check the health of the person regularly. In various firms, the same is essential to have pre-employment health check-ups done prior to hiring an employee. For several types of staff, an occupational health check is needed at several stages of their occupation, as a new individual is tasked with a specific job.
The petitioner would submit that the services rendered by the appellant do not come in the meaning of the social services. Occupational health is said to come under healthcare services.
AAAR Edited the AARs Ruling
“The AAAR stated that supply of Occupation Health Check-up Service by the hospital, i.e. nursing staff, doctors, paramedical staff on hospital’s payroll working in different corporate for providing health check-up services, ambulance facility, and allied medical services to their employees and also the camps conducted for health check-up outside the hospitals to be treated as Health Care Service and exempted under GST in terms of Entry at Sr.No.74 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 and Notification No. 12/2017-State Tax (Rate) dated 30.06.2017.”
