Dermatological Treatments For Psoriasis And Skin Disorders Exempt from GST: Kerala AAR Clarifies

The Kerala Authority for Advance Ruling (AAR) ruled that healthcare services provided for the treatment of psoriasis, dandruff, dermatitis, fungal infections and folliculitis are exempt from GST.

The ruling was delivered by a coram comprising Jomy Jacob, IRS (Additional Commissioner of Central Tax) and Mansur M. I. (Joint Commissioner of State Tax).

The applicant, a board, engaged in providing dermatological treatments through qualified medical practitioners at licensed clinics. It sought clarity on the availability of GST exemption for treatments relating to chronic and infectious skin conditions.

It contended that these services constituted “healthcare services” rendered by a “clinical establishment” as defined under the exemption notification.

The AAR examined the scope of a 2017 notification and observed that conditions such as psoriasis and dermatitis are recognised medical ailments requiring diagnosis and treatment. While reiterating that cosmetic or aesthetic procedures are excluded from tax exemption, the AAR held that the treatments in question were not cosmetic. Rather, they were therapeutic in nature and supported by medical records, prescriptions and diagnostic reports.

Accordingly, the AAR ruled that the the dermatological treatments provided by the applicant qualified for GST exemption

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