In re Corbett Nature Reserve (GST AAR Uttarakhand)
We find that the applicant in their website has advertised that in the AAHANA NATUROPATHY CENTRE, they are providing the facilities of Ayurveda (the ancient Indian art of healing), Nature Cure (drugless cure), Yoga (Mind Body balance), Western Spa therapies (body detox) and multitude of relaxing therapies and that the therapies are provided under the guidance of Wellness experts in a hygienic, eco friendly and luxurious environment and that the time-tested holistic therapies not only guide to preserve health and cure disease but also promote sound sleep and reduce the ageing process. The web site also illustrates various packages with the name “SIGNATURE MASSAGES- PARTIAL MASSAGES, AYURVEDIC MASSAGES, NATUROPATHY MASSAGES, THERAPIES- COLON THERAPY, HYDRO THERAPY BLISS, AYURVEDA INSPIRED THERAPIES, PACK- UBTAN, BEAUTY PACKS, HERBAL BODY WRAPS, UNDER WATER MASSAGE- MINERAL BATH, HERBAL BATH, JACUZZI BATH, YOGIC KRIYA – NASAL, HYGIENE, STOMACH HYGIENE, HERBAL COLON and YOGA BATHS-SUN BATH, HERBAL MUD BATH, DETOX SAUNA BATIT.
We are of the opinion that the procedures listed and advertised therein as holistic therapies, does not cure any i) Illness ii) Injury iii) Deformity iv) Abnormality, or v) Pregnancy, etc. and is also cannot be the procedures to carry out diagnostic or investigative services of diseases, as mandated in the Notification, hence does not falls under the definition of health care services.
supply of services mentioned at Sr. No. 74 of the aforementioned Notification pertain to : (a) Services by way of – (a) health care services by a clinical establishment, an authorised medical practitioner or paramedics; (b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above. The said services, which are classified under Heading 9993, have been exempt from payment of GST.
However, as discussed in the foregoing paras, the supply of services provided by the applicant, which is a composite supply, has been classified under sub-heading No. 996311 under ‘Room or unit accommodation services provided by Hotels, Inn, Guest House, Club and the like’. The exemption at Entry No. 74 of Exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 is applicable to services falling under the Heading 9993. However, the nature of services provided by the applicant is covered under the sub-heading 996311, as discussed above. Therefore, we conclude that the exemption available at Entry No. 74 of Exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 is not applicable to the applicant.
The applicant M/s Corbett Nature Reserves (M/s. Aahana Naturopathy Centre) is not eligible to get the benefit of Entry No. 74 of exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017
Also Read : AAAR Order: GST payable on Naturopathy with accommodation service
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, UTTARAKHAND
1. This is an application under Sub-Section (1) of Section 97 of the Central Goods & Service Tax Act, 2017 and Uttarakhand State Goods 86 Service Tax Act, 2017 (hereinafter referred to as CGST/SGST Act) and the rules made there under filed by M/s Corbett Nature Reserve at Village- Sawaldeh, PO Semalkhaliya, Jim Corbett National Park, Ramnagar Nainital, India- 244715, a partnership firm and registered with GSTIN- 05AAGFC3157J1ZJ under the CGST Act, 2017 read with the provisions of the UGGST Act, 2017 (hereinafter referred to as ‘the applicant).
2. The applicant has submitted that they are running a Resort namely “Aahana-The Corbett wilderness” and also runs an independent unit namely “Aahana Naturopathy Centre” wherein they are providing various services in the form of Nature cure (drugless cure) 8& Yoga therapies(Health care services). The health care service charges are collected from the customer according to the therapy/treatment provided, which are not restricted only to the in-house customers, but open to all. And that even the in-house customers are charged separately according to the nature of treatment provided to them. The applicant’s Unit is registered under the Clinical establishment Act, 2010 vide reg No. ………………………………. 018/2016 Dated 07/10/2016 as “Naturopathy Centre”, and that the said health care services (Naturopathy) provided by “The Centre” is exempt from the levy of GST under Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 under Entry 74 (SAC Heading 9993) which pertains to Services by way of health care services by a clinical establishment, an authorized medical practitioner or para-medics.
In view of the above facts they are seeking advance ruling on the following question:-
Whether “The Centre” of the applicant is eligible to get the benefit of entry No. 74 of exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017, classified under SAC Heading 9993.
3. At the outset, we would like to state that the provisions of both the CGST Act and the SGST Act are the same except for certain provisions; therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the SGST Act.
4. The Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
5. As per the said subsection (2) of Section 97 of the Act advance ruling can be sought by an applicant in respect of:-
(a) Classification of any goods or services or both
(b) Applicability of a notification issued under the provisions of this Act,
(c) Determination of time and value of supply of goods or services or both,
(d) Admissibility of input tax credit of tax paid or deemed to have been paid
(e) Determination of the liability to pay tax on any goods or services or both
(f) Whether the applicant is required to be registered
(g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term.
6. Since applicant has sought advance ruling on classification of service and applicability of notifications, therefore, in terms of said Section 97(2) (e) of the Act, the application filed by the applicant has been admitted.
7. We find that the applicant is a partnership firm registered with GSTIN bearing no. 05AAGFC3157J1ZJ in Uttarakhand at Village- Sawaldeh, PO Semalkhaliya, Jim Corbett National Park, Ramnagar Nainital, India- 244715 and in their application and written submission dated 28.09.2021, the applicant submitted that:-
a. The Central Board of Indirect Taxes (CBIC) vide entry no. 74 of the Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017, has exempted care services’ rendered at clinical establishments by authorized medical professionals or para-medics, from the applicability of GST.
b. As per the clause 2(zg) of the Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 “health care services” means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and that the applicant’s services squarely fall under the Service accounting Code 9993-19 ….”Other human health Services including homeopathy, Unani, Ayurveda, naturopathy, acupuncture and the like.”
c. As per clause (s) of the Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 “clinical establishment” has been defined as “means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases.” and that the applicant’s unit is registered under the Clinical establishment Act, 2010 vide reg. No. ……………….. 018/2016 Dated 07/10/2016 as “Naturopathy Centre”.
d. The Clause (k) of the Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 defines Authorised Medical Practitioner as – “authorized medical practitioner means a medical practitioner registered with any of the councils of the recognised system of medicines established or recognised by law in India and includes a medical professional having the requisite qualification to practice in any recognised system of medicines in India as per any law for the time being in fared9 and that the services at the Naturopathy Centre are being provided by Dr. Brij Bhusan, Bachelor of Naturopathy and Yogic Sciences (BNYS).
e. The systems of Medicine recognized in India are (i) Allopathy(ii) Ayurveda(iii) Siddha(iv) Unani(v) Homeopathy(vi) Yoga(vii) Naturopathy and as such shall fall in the category of “Health Care Services”, so as to qualify for exemption from GST, at par with Allopathy based medical treatments.
f. By virtue of entry no. 77 of CBEC Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017, and CBEC, circular bearing F.No. 354/17/2018-TRU, dated 16.2.2018, the accommodation charges/room rent, retention money, food charges and fees payments being charged from in-patients, by medical institutes/clinical establishments/hospitals, providing health care services as defined under clause 2(zg) of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017, have been categorically exempted from the levy of GST.
g. The Naturopathy, Ayurveda & Yoga systems of medicine involve a wholesome therapeutic treatment involving lifestyle changes and Naturopathy based systems of medicine, are equally effective, responsive, natural, and wholesome systems of medicine, and are duly recognised systems of medicine in our country, at par with allopathy-based system of medicine.
h. The applicant’s naturopathy centre, providing medical treatments through such duly recognized systems of medicine, through qualified and approved practitioners, shall be treated at par with the hospitals/medical institutes/clinical establishments providing allopathy based medical treatments.
i. In the applicant’s centre about 123 healing therapies are being provided and that about 40 diseases are being treated, which can be accessed at the website of the applicant at http://www.aahananaturopathy.com.
j. The promotion and development of “Yoga” and “Ayurveda” has been the priority of the Union Government and the Government of Uttarakhand and that the Union government has been successful in making the United Nations declare 21 June of every year as International Yoga Day, therefore, in line with the Legislative intent and the Government’s commitment to bring Yoga, Ayurveda and Naturopathy based treatments at the forefront, the Naturopathy centre of the applicant squarely falls under the health care services exempted from Goods & Service Tax.
8. Personal hearing was attended by Mr.Pavan Nath, Chartered Accountant on behalf of the applicant on 28.09.2021, wherein he reiterated the submission already made in their application. Further, a write up dated 28.09.2021 was submitted along with copies of the Registration certificate (Praroop-3) No. ………………………… 018/2016 dated 07.10.2016 issued by the “Zila Registrikaran Pradhikaran, Karyalaya Mukhya Chikitsa Adhikari, Nainital” showing registration under Clinical Establishments (Registration and Regulation) Act, 2010 and Copy Certificate of Registration (Under the Karnataka ACT 9 of 1962) of Dr. Brij Bhusan Kumar issued on 18.10.2012 by the Registrar, Karnataka Ayurvedic Naturopathy Siddha Unani & Yoga Practitioner’s Board, Bangalore.
Views of the Concerned Officer:
9. The brochure submitted by the applicant put emphasis on services to preserve health, promote sound sleep, reduce the ageing process and how to deal with stress naturally, how to lose weight naturally, how to increase your immunity system etc., but these services are not for diagnosis or treatment of particular ailment or injury etc., as specified in the definition of Health care services as laid down in Exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017. The Legislative intent is not to bring western spa and relaxing therapies under such exemption and the services provided by applicant under Aahana Naturopathy are in the form of five star luxury wellness package and deals for relaxation and general well-being, thus, does not qualify for exemption under entry No. 74 of Exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017
10. This is apparent form the applicant’s website http:/ /www.aahananaturopathy.com, wherein they introduce themselves as;-
“Best Wellness programs in India-Special crafted offers and deals by 5 * Luxury wellness retreat…. “For wellness, you don’t need to find a special time. It can be done when you are holidaying too, Aahana naturopathy, 5 star luxury naturopathy in India offers you the unique blend of luxury holiday and wellness both at a same time…. Aahana Naturopathy Centre brings to you, a complete health package; a fusion of, Ayurveda (the ancient Indian art of healing), Nature Cure (drugless cure), Yoga (Mind Body balance), Western Spa therapies (body detox) and multitude of relaxing therapies. The therapies are provided under the guidance of our Wellness experts in a hygienic, eco-friendly and luxurious environment.”
11. And that the Entry No. 74 of exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 pertains to health care services by way of a clinical establishment, an authorized medical practitioner or para-medics. Further, Health care services, Clinical establishment, Authorised medical practitioner and Paramedics have been defined in the statue, which are reproduced hereunder:-
“Health care services” means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;
“Clinical establishment” means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases;
“Authorised medical practitioner” means a medical practitioner registered with any of the councils of the recognized system of medicines established or recognized by law in India and includes a medical professional having the requisite qualification to practice in any recognized system of medicines in India as per any law for the time being in force;
“Paramedics” mean health care professionals such as nursing staff, physiotherapists, technicians, lab assistants etc. Services by these professionals in a clinical establishment in the capacity of employee and not provided in independent capacity and thus consider as services by such clinical establishment.
12. The above provisions clearly specify that the exemption is for Clinical Establishments, Authorized medical practitioners and Paramedics with certain conditions. The applicant is running a resort and providing luxury category leisure-relaxation services for rejuvenation of tourists/visitors. These services cannot be said to be in the nature of health care services as defined under respective provisions of GST because the resort M/s Corbett Nature Reserves (Aahana- The Corbett wilderness) is not for the purpose of clinical establishment or diagnosis or treatment, although the “Centre” is open to all, but it’s not a place where routine patients come for diagnosis or treatment or to avail health care for illness, injury… etc. and the services in question are just some value added services under the resort provided to guests and visitors.
13. The applicant cannot be said to be a clinical established by any mean and just be giving its certain services a colourful name, does not make it qualify for exemption which is available only to hospitals, nursing home, clinic, sanatorium etc. for services or facilities requiring diagnosis or treatment or care of Illness, Injury, Deformity, Abnormality, or Pregnancy, etc.
14. Hence, going by criteria as mentioned in previous paragraphs, applicant resort do not qualify to be an authorized medical practitioner or paramedics, therefore, entry No. 74 of the exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017does not apply in applicant’s case, and no exemption should be available to applicant.
Discussion & findings:
15. We have considered the issue involved, on which advance ruling is sought by the applicant, relevant facts, the applicant’s interpretation of law as well as the arguments/discussions made by their representative Shri Pavan Nath at the time of personal hearing.
16. The applicant has contended that their Aahana Naturopathy Centre is a naturopathy centre duly registered under Clinical Establishments Act, 2010 engaged in providing medical treatments through healing therapies of recognized systems of medicine by a well qualified and registered medical practitioner and hence fulfills all the conditions of health care services as per the entry no. 74 of the Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 and that the circular bearing F.No. 354/17/2018-TRU, dated 16.2.2018, has clarified that the accommodation charges/room rent, retention money, food charges and fees payments being charged from in-patients, by medical institutes/clinical establishments/hospitals, providing health care services as defined under clause 2(zg) of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017, are exempt from the levy of GST classified under SAC Heading 9993.
17. The applicant has sought classification of services provided by them as per the above notification in Heading 9993 (human health and social care services) which appears at Sr. No. 31 of the said notification and that as per annexure to the said notification, the specific service provided by them appears at Sr. No. 612 (subheading 9993 19) and reads as under :
