GST on Healthcare Services Under Diamond Plan: AAAR Gujarat Rejects Appeal for Lack of Documents

In re Divyajivan Healthcare Pvt. Ltd. (GST AAAR Gujarat)

Gujarat Appellate Authority for Advance Ruling (AAAR) has dismissed an appeal filed by Divyajivan Healthcare Pvt. Ltd. concerning the Goods and Services Tax (GST) applicability on their “Health Care Service (Diamond Plan).” The plan, which offers 20 years of healthcare services for a lump sum of Rs. 10 lakhs, includes hospitalization benefits, annual preventive health check-ups, advanced health check-up services, special healthcare treatments, and privilege card benefits.

Divyajivan sought an advance ruling to determine whether the lump sum amount received for this plan would be exempt from GST under Sr. No. 74 of Notification No. 12/2017-Central Tax. The Gujarat Authority for Advance Ruling (GAAR) declared the application not maintainable, citing the appellant’s failure to provide adequate documentation detailing the nature and characteristics of the services offered under the “Diamond Plan.”

Specifically, the GAAR noted that the plan encompassed over 100 types of tests, special healthcare treatments like dental and skin care, and tie-ups with hospitals across India. However, Divyajivan did not submit detailed documents outlining these services, the scope of services provided by the tie-up hospitals, or the terms and conditions of payment.

In the appeal, Divyajivan contended that they had submitted detailed information and that their services qualified as healthcare services exempt from GST. However, the AAAR found that the appellant had only provided a single sheet listing the plan’s details and a sample bill of supply. The AAAR emphasized that the complete set of documents requested by the GAAR, which were crucial for determining the nature and taxability of the services, was not presented.

Consequently, the AAAR upheld the GAAR’s decision, stating that without the necessary documentation, it was impossible to ascertain whether the services provided under the “Diamond Plan” fell within the scope of exempt healthcare services. The appeal was rejected due to the appellant’s failure to furnish the required documents, preventing a proper evaluation of the matter. 

FULL TEXT OF THE ORDER OF APPELLATE AUTHORITY FOR ADVANCE RULING, GUJARAT

At the outset we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 and Gujarat Goods and Services Tax Act, 2017 (hereinafter referred to as the `CGST Act, 20 ] 7′ and the `GGST Act, 2017′) are part materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act, 2017 would also mean reference to the corresponding similar provisions in the GUST Act, 2017.

2. The present appeal is filed under section 100 of the CGST Act, 2017 and the GGST Act, 2017 by M/s. Divya Jivan Healthcare Pvt. Ltd. (for short —`Appellant’) against the Advance Ruling No. GURGAARJR/01/2022 dated 07.01.2023.

3 Briefly, the facts are enumerated below for ease of reference:

4. The appellant has devised a plan, namely “Health Care Service (Diamond Plan)” wherein the appellant shall provide the 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 appellant will also tie-up with other hospitals pan India from where the members can avail health care services.

5. The “Health Care Service (Diamond Plan)” of the applicant shall include the following health care 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 under:

iii. Advance health check-up services which are Coronary Angiography, Cancer Markers, Endoscopy, MRI — any one part, Mammography & PAP Smear, Sleep Study, Foot Scan and Naturopathy.

iv. Special health care treatments which are dental treatment (basic dental care or one implants per year if need arises), skin care treatment (no cosmetic/beautification treatment cover), adult vaccination (with basic vaccine cost).

v. Privilege card benefits which are home care services, priority OPD appointments in tie-up hospital, tele-medical guidance through application.

6. The appellant further stated that they will digitalize the health records based on the above tests and treatments of the beneficiary members for their easy access and shall also provide regular reminders updates and health education tips.

7. In view of the foregoing facts, the appellant had sought Advance Ruling on the following questions, viz:

“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- Central Tax.“

8. Consequent to hearing the applicant, the Gujarat Authority for Advance Ruling [GAAR], recorded the following findings viz:

• that the Diamond Plan covered more than 100 types of test, sleep study, foot scan and naturopathy, special health care treatments like dental & skin care treatment, privilege card treatment, priority OPD appointments in tie-up hospital, tele-medical guidance through application;
• that all the services provided to the customers under the Diamond Plan is required to be examined in detail to know the nature and characteristic of the service and to decide the taxability under GST;
• that the applicant has not submitted any documents with regard to Diamond Plan which contained in detail the nature and characteristics of services provided under Diamond Plan;
• that the applicant has stated that they have tie up with other hospital pan India but have not submitted any documents in this regard & therefore it is difficult to know the scope of service, types of services to be provided by such Hospital and terms and conditions of the payment;
• that the applicant failed to submit the documents which contains the details of services to be provided under the ‘Diamond Plan’ to the potential customer;
• that in absence of documents it is not possible to figure out as to whether the services mentioned in the application arc covered under the Health Care Service or otherwise.

9. The GAAR, thereafter, vide the impugned ruling dated 18.10.2021, held as follows:

“The application of the applicant is not maintainable.”

10. Aggrieved, the appellant is before us, raising the following contentions, viz

• that the services proposed to be provided by them are health care services and the same are exempted under Sr. No. 74 of the of notification No. 12/2017- Central Tax (Rate) dt. 28.06.2017;
• that they had submitted detailed nature and characteristics of services under Diamond Plan;
• that the person availing “Health Care Service (Diamond Plan)” cannot get treatment or care for illness at a hospital of his/her choice nor can he claim any reimbursement for getting treatment/care for illness at any hospital, other than the hospital of the appellant or the hospital suggested by the appellant.

11. Personal hearing in the matter was held on 21.01.2025 wherein Shri Anish Goyal, CA, appeared and reiterated the submissions made in the appeal.

12. We have carefully gone through and considered the appeal papers, written submissions filed by the appellant, submissions made at the time of personal hearing, the Advance Ruling and other materials available on record.

13. GAAR, vide its impugned ruling dated 7.1.2023, held the application filed by M/s. Divyajivan Healthcare Pvt. Ltd., to be not maintainable based on the below mentioned findings:

“14. We find that Diamond Plan of the applicant covered more than 100 types of test, Sleep Study, Foot Scan and Naturopathy, Special health care treatments like Dental & skin care treatment, Privilege card treatment, Priority OPD appointments in tie-up hospital, tele-medical guidance through application. All types of such service provided to the customer under Diamond Plan are required to be examined in detail to decide the nature and characteristic of the service to decide the taxability under GST. The applicant has not submitted any type of documents with regard to Diamond Plan which contained in detail nature and characteristics of services provided under Diamond Plan.

15. We find that the applicant have also tie up with other hospital in pan India to provide the service mentioned under ‘Diamond Plan’ but have not submitted any documents in this regard so that we are not in position to know the Scope of Service, types of services to be provided by such Hospital and terms and conditions of the payment. Also the applicant have failed to submit the documents which contains the details of services to be provided under the ‘Diamond Plan’ to the potential customer. The applicant has not disclosed the correct fact/information in respect of this application therefore, in absence of such documents it is not possible to figure out the services which have mentioned in the application are covered under the Health Care Service or otherwise.”

14. We find that appellant has now vide Annexures H and I to the appeal papers, attached only a single sheet of paper listing out the details of Diamond plan and has also submitted a copy of the bill of supply No. 3/2021-22 dated 12.8.2021, issued to one of their customers.

15. We are constrained to state that complete set of documents, as sought for in paragraphs 14 and 15 of the impugned ruling dated 7.1.2023, is not produced before us.

16. Hence, the only option left is to reject the appeal filed by the appellant on the grounds that they have not provided the relevant documents to enable us to decide the matter.

17. In view of the foregoing, we reject the appeal filed by M/s Divyajivan Healthcare Pvt. Ltd against Advance Ruling No. GUPGAAR/R/01/2023 dated 07.01.2023 passed by the Gujarat Authority for Advance Ruling.