In re Oswal Industries ltd.( M/s. Nimba Nature Cure Village) (GST AAR Gujarat)
The applicant M/s. Oswal Industries ltd. (M/s. Nimba Nature Cure Village) is not eligible to get the benefit of entry No.74 of exemption Notification No.12/2017-Central Tax (Rate) dated 28.06.2017.
Read AAAR Order : Nimba Nature Cure Village not eligible for GST Exemption notification benefit
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
The applicant M/s. Oswal Industries ltd. (M/s. Nimba Nature Cure Village) vide their application for Advance Ruling has submitted that they are a body corporate and registered under the CGST Act, 2017 read with the provisions of the GGST Act, 2017. Nimba Nature Cure Village is a unit of M/s. Oswal Industries ltd. The applicant has stated that this is one of the largest Naturopathy Centers in India and offers physical, psychological and spiritual health overhaul with the help of power of nature; that Nimba nature cure borrows name from a ‘Nimba’ well-known tree which brings perfect, complete and imperishable health to everyone, which is why it is also known as ‘Arista’ and every part of a nimba tree gives amazing health benefits.
2. The applicant has further stated that they provide different types of wellness facilities at Nimba such as Naturopathy, Ayurveda, Yoga and meditation, Physiotherapy and Special therapy and has described them in brief as under:
(a) Naturopathy: It is an ancient and traditional science which integrates the physical, mental and spiritual aspects of our natural constitution and is a system working towards cure of diseases where all levels of the body are treated simultaneously and holistically. The principal aim of Naturopathy is to teach people the art of healthy living by changing their daily routine and habits which not only cures the disease but makes the bodies strong and glowing. It is therapeutic in itself and can be used to help cure and relieve many of today’s illnesses and diseases.
(b) Ayurveda: It is the science of life and ayurveda treatment puts emphasis on the fact that the human body is a part of cosmic system and focuses on eradicating the root cause of the disease. It addresses the problem as per the Prakriti (nature) of the individual. Ayurveda touches upon all the aspects of the person like emotional factors, physical factors, psychological factors, and spirituality and brings them to harmony.
(c) Yoga and meditation: Yoga and medication are the processes to attain equilibrium between the body systems and nature. Here techniques like Asana, Pranayama (breathing), Mudra Yoga, Bandha Yoga, Shatkarma, and meditation are practised to improve health and immunity. Yoga therapy is a way to bring all the body systems in sync thereby obtaining the healthiest state for the yoga practitioner. Nimba which offers holistic rejuvenation for the mind, body and soul is a unique meditation retreat and yoga retreat in India offering the best yoga therapy programs.
(d) Physiotherapy: It is a science of overall physical wellbeing, involving physical therapy for injury and prevention of disability by providing treatment and rehabilitation for physical issues. The main focus areas of Physiotherapy treatment are musculoskeletal functions and nervous system. Physiotherapy exercises are highly beneficial for a wide variety of clinical conditions such as musculoskeletal problems, neurological damage, orthopaedic injuries, incontinence, post-partum care, cardio respiratory problems, and palliative care.
3. The applicant has stated that some of the hallmarks of corporate wellness program at NImba are physical activity, tobacco cessation, stress management and back care programs. Such wellness facilities are provided for different types of diseases such as:
(i) Respiratory disease: Sinusitis, Emphysema, Allergic Bronchitis, Ashthma, Pulmonary Fibrosis and Influenza.
(ii) Gastro Intestinal Diseases: Constipation, Hyper acidity, Gastritis, Fatty Liver, Indigestion, and Ulcerative Colitis
(iii) Muscular Skeleton Diseases: Osteoarthritis, Rheumatoid Arthritis, Gout, Cervical Spondylitis, Sciatica and Back Ache.
(iv) Endocrine Diseases: Hyperthyroidism, Diabetes Mellitus, Obesity, Hypothroidism, Goiter and Osteoporosis.
(v) Lifestyle Diseases: Chronic Heart Diseases, Skin Diseases, Psychological Disorder, De-Addiction & Rehabilitation, Neuro Disorders and Female Disorder.
4. The applicant has stated that such wellness facilities are provided with the help of highly qualified professionals’ doctors in the field of naturopathy, researchers, and support staff. Nimba Nature Cure helps to heal through alternative therapies from traditional Chinese acupuncture treatment to ancient Egyptian cupping therapy, from reflexology to acupressure therapy and even hot stone therapy; that whether it is stress in mind or too many toxins in body or work related injury or age related problems, the experienced health professionals at Nimba are there to treat them. The applicant also stated that acupuncture therapy is considered to be very effective for weight loss, back pain and headaches; that applicant offers the chance to revive the crucial equilibrium of the five basic elements of life like earth, water, air, fire and ether; that human body is capable of healing itself by maintaining the effective balance of the mind, the body and the soul and if this balance deviates from the normal, it creates health complications and general disorder in the body systems and that patient can benefit from the distinctive synergism between modern science, traditional practices and ancient wisdom with professional guidance. The applicant has further stated that in pre-GST regime, the applicant had received letter from the department dated 10.03.2015 for clarification regarding registration under Service Tax and on the basis of that letter the applicant has been enjoying exemption vide Notification No.25/2012-ST dated 20.06.2012 (Sl.No.2(i)) under the Finance Act, 1994. The same reads as under:
“health care services by a clinical establishment, an authorised medical practitioner or para-medics;”
Where, “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 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.
5. The applicant has stated that in post-GST regime, Section 9 of the CGST Act, 2017 is the charging section and that the term ‘services’ has been defined under Section 2(102) of the CGST Act, 2017; that in exercise of powers conferred under Section 9(1) of the CGST Act, 2017, Notification No.11/2017-Central Tax(Rate) dated 28.06.2017 has been issued which notifies the central tax, on intra-state supplies of service description along with Tariff Heading as designed in accordance with the scheme of classification specified which are subject to specific conditions; that an annexure has also been appended with it which according to Explanation No.4(ii) of the notification is useful as:
“Reference to “Chapter”, “Section” or “Heading”, wherever they occur, unless the context otherwise requires, shall mean respectively as “Chapter, “Section” and “Heading” in the annexed scheme of classification of services (Annexure).
The applicant has stated that the classification of services provided by them as per the above notification is 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 and reads as under:
