In re Indovation Healthcare LLP (GST AAR Uttarakhand)
The Authority for Advance Ruling, Uttarakhand, examined an application filed under Section 97 of the CGST/SGST Act by a taxpayer engaged in operating and managing Government Urban Health & Wellness Centres (UHWCs) and Polyclinics in Uttarakhand under a government-funded public healthcare programme. The programme was implemented based on recommendations of the 15th Finance Commission, with execution handled through a Public Sector Undertaking acting as the designated agency under a formal agreement with the State Government.
The applicant operated healthcare facilities owned by the Government and provided services such as consultations, diagnostics, pharmacy, preventive care, and outreach activities strictly in accordance with Government guidelines. These services were delivered free of cost to beneficiaries, and no commercial revenue was generated. Funding for the programme was received as Government grants routed through the executing agency. The applicant had no pricing autonomy and functioned under contractual obligations with the executing agency.
The applicant sought clarity on whether its activities qualified for GST exemption under Entry 74 of Notification No. 12/2017 as “healthcare services by a clinical establishment,” or alternatively under Entry 3 as “pure services” provided to the Government in relation to municipal functions under Article 243W. It argued that it functioned as a clinical establishment and that its services were healthcare in nature. It further contended that the services were funded through Government grants and should not be treated as taxable consideration.
