Ayurvedic Healthcare Services to Inpatients Entitled for GST Exemption: AAR Kerala

M/s Ayushya Ayurvedic and Panchakarma Centre (Padmanabha Pillai Sambhu) has filed an application seeking Kerala Authority for Advance Ruling (AAR) in the context of the business it is involved in.

The applicant is a hospital registered under the GST Act, located at 20A, Meenakshi, Artech City, Vazhuthacadu, Thiruvananthapuram, Kerala – 695014. The applicant possesses a GSTIN 32AFTPP4186J1ZU and is paying GST on the services it provides.

The applicant claims that it is engaged in providing both inpatient and outpatient healthcare services.

Question Asked by Applicant:

The following is the question asked by the applicant seeking the AAR Kerala:

“Question: Whether the applicant is eligible to get the benefit of entry No. 74 of exemption notification No. 12/2017-Central Tax (rate dated 28/06/2017 of the Government of India (Ministry of Finance)?”

Ruling Given by AAR Kerala:

The following is the ruling given by AAR Kerala in answer to the question asked by the applicant:

Ruling: According to the ruling delivered by the AAR Kerala, the applicant is entitled to the tax exemption in respect of the healthcare services provided to the inpatients, including medicines, consumables, and other ancillary services, as per Entry No. 74 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017. However, it was clarified that the supply of medicines or other goods to outpatients, even if based on a doctor’s prescription, is not entitled to the said exemption, and GST will apply to them at the applicable rates. Moreover, GST exemption will not apply to room rent (other than ICU/CCU/ICCU/NICU rooms) above Rs 5,000 per day per patient, and GST will apply to it according to the applicable provisions.