GJ AAAR: Occupational Health Check-up Services Exempted From GST

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.”

Arpit Kulshrestha

Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous.

Recent Posts

No GST Returns Will Be Accepted If Filed More Than 3 Years Past Their Due Date

An advisory has been released by the Goods and Services Tax Network (GSTN) which notifies…

6 hours ago

Delhi HC: Two Judgment Orders Against One SCN Cannot Be Accepted for the Same Period

It was cited by the Delhi HC that the two adjudication orders against one SCN…

8 hours ago

CBDT Allows Electronic Filing of Forms 3CEDA and 3C-O Via Notification No. 5/2024

The Central Board of Direct Taxes (CBDT) in an update for the taxpayers via the…

9 hours ago

October 2024 Records the 2nd Highest GST Collection, Driven by Domestic Sales

In October, Gross GST collection surged to 9% to Rs 1.87 lakh crore, the second…

10 hours ago

UP AAR: GST Will Be Levied on the Installation of Electricity Distribution Systems by DISCOMs

Goods and Services Tax (GST) is to get paid on the procurement of materials and…

2 days ago

Bombay HC Quashes Rejection Order for Voluntary GST Cancellation Due to Lack of Stated Reasons

The Bombay High Court carried that as the revocation orders for the registration cancellation on…

3 days ago