Occupation Health Check-Up Service By The Hospital Are Health Care Services, No GST Payable: AAAR

The Gujarat Appellate Authority of Advance Ruling (AAAR) consisting of Seema Arora and Milind Torawane has ruled that no GST is payable on the occupational health check-up service by the hospital as it was covered under health care services. The appellant, M/s. Baroda Medicare Private Limited, is running 3 multi- specialty hospitals under the brand name "Sunshine Global Hospitals' at Manjalpur, Vadodara, and Surat. The hospital requested an advance ruling on whether the supply of medicines, surgical items, implants, consumables, and other allied services and items provided by the hospital through their hospital in-house pharmacy is part of the composite supply of health care treatment and thus not taxable under CGST/SGST. Yet another issue raised was whether the supply of Occupational Health Check-up (OHC) services by the hospital to their employees and also the camps conducted for health check-ups outside the hospitals should be treated as healthcare services and thus not taxable under CGST/SGST. The AAR determined that the supply of medicines, surgical items, implants, consumables, and other allied items provided by the hospital through their hospital in-house pharmacy in the course of providing health care services, as well as the supply of food and room on rent to in-patients admitted to the hospital for diagnosis, medical treatment, or procedures, is a composite supply of In-Patient Healthcare Service.CGST.of in-patient health care services is exempted from CGST. The AAR also ruled that the hospital must pay 18% GST on payments received directly from the business entity for health services provided to business entity employees in relation to Occupational Health Check-up (OHC) or preventive care. The appellant appealed against the order of the AAR. The appellant submitted that some hazards are common for all industries, like hazardous substances, dust, machinery-related accidents, trips and falls, physically demanding work, heat and cold, etc. The best way to avoid any accident is to have a preventive and safety process in place and get an individual's health check done regularly. In many companies, it is becoming mandatory to have a pre-employment health check-up done even before hiring an employee. Occupational health checks can be required for a variety of staff, at various stages of their occupation, starting before a new person is assigned to a particular job. The appellant has submitted that the services rendered by the appellant do not fall within the meaning of social services. The Occupational Health Check-up is in the nature of healthcare services. The AAAR modified the ruling of the AAR. The AAAR held, "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." Appellant's Name: Baroda Medicare Private Limited, Sunshine Global Hospital Citation: GUJ/GAAR/R/106/2020 Dated 30.12.2020 Click Here To Read/Download Order

Occupation Health Check-Up Service By The Hospital Are Health Care Services, No GST Payable: AAAR

Mariya Paliwala

Tags