In re Divyajivan Healthcare LLP (GST AAR Gujarat)
Whether lump-sum amount received for Health care Services to be provided for 20 years by the applicant as ‘Diamond Plan’ is exempted from Goods and Services Tax as per Sr. No. 74 of Notification No. 12/2017- CT(R)?
On careful consideration of the applicant’s submission, we find that the scope of supply of services by the applicant is ‘health care services’ by a clinical establishment and also that the applicant’s Partner Dr. P.G.Korodia is an authorised medical practitioner. We find the subject consideration is received for health care services. Further applicant’s tie up with the other hospital for diagnosis does not alter the scope of supply of health care services by the applicant to its service recipients.
AAR ruled that M/s Divyajivan supplies Health care Services under Diamond Plan which merits exemption from GST vide Sr. No. 74 of said Notification No. 12/2017- CT(R) read with CBIC Circular No. 32/06/2018-GST, dated 12-2-2018.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
M/s. Divyajivan Healthcare LPP, the applicant submits that it proposes to establish a multi-super speciality hospital and provide health care services to patients. The applicant devised a plan, namely “Health Care Service (Diamond Planf for providing health care services for next 20 years for which a lump-sum amount, say, Rs. 10 Lakhs will be charged. Under the plan the services will be provided to the family i.e., Member, Spouse & up to 2 children (age below 21 years). The applicant will also tie-up with other hospitals pan India from where the members can avail health care services.
2. The “Health Care Service (Diamond Planf of the applicant includes the following services:-
i. Hospitalization Benefits i.e., in-patient Service up to INR 10 Lakhs in a year
ii. Compulsory Annual Preventive Health Check-up with 100+ test/investigation/consultations covered; which are tabulated as follows:
