GST Applicable on medical monitoring services to senior citizens: Read what AAR says

GST Advance ruling Authority recently pronounced that services of regular medical monitoring along with other logistic support as provided by the applicant to senior citizens at their door step does not qualify for exemption and the same is liable to tax @ 18% vide serial number 31 Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 [corresponding West Bengal State Notification No.1135 F.T. dated 28.06.2017], as amended.

The applicant is stated to be engaged in providing services for health care to senior citizens which covers arranging doctors, nurses, taking the clients to any diagnostic centre, supplying oxygen and physical support as per requirement of such senior citizens and for all such services, the applicant runs a membership programme where clients opt for the same as per their requirement. In addition to this, the applicant also provides services to its members for delivery of medicines and grocery items at home, helping with bank work, utility bill payment etc.

The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under seeking advance ruling whether the services rendered by the applicant for health care to senior citizens at their door step comes under exemption category and what will be the classification of such services. Further, if such service is held taxable, then what would be the rate of tax.

Members enrolled under two limbs

Authority found that applicant was engaged in providing services to its enrolled members under two limbs. The first one, which is against a consolidated package amount, comprises inter alia of care manager visit for medical checkup, general physician home visit and home delivery of medicine. The other part also covers services by general physicians, nurses and care managers for which the applicant charges separately. The aforesaid services may get covered under health care services as defined in Para 2 (zg) of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017. However, supply by way of health care services qualifies for exemption under serial number 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 if the same is provided by a clinical establishment, an authorised medical practitioner or para-medics. Admittedly, the applicant doesn’t fall under any of the aforesaid categories of suppliers and the services provided by the applicant, therefore, fail to qualify as exempted service.

For Official Ruling Download PDF Given Below: