Kerala AAR Rules Dermatological Treatments Exempt as Healthcare Services under GST:

Kerala AAR Rules Dermatological Treatments Exempt as Healthcare Services under GST The applicant is involved in rendering healthcare services by operating clinical entities for treating ailments such as dermatological ones like psoriasis of the skin and scalp, dandruff, dermatitis, anti-fungal infections, folliculitis, and other similar diseases. Such treatments are provided to patients by qualified medical practitioners, dermatologists, as well as trained paramedics, as per licenses issued by the concerned local authorities, as well as by the Health Service Department. The applicant had sought an advance ruling for availing the exemption under GST against Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017. It was submitted that the treatments are provided strictly on medical advice and prescription, supported by consultation records, diagnostic reports, patient consent forms and invoices specifying the nature of services and the attending medical professionals. The applicant contended that it qualifies as a “clinical establishment” and that the services rendered fall within the definition of “healthcare services” under the said notification. The jurisdictional officer reported that the issue raised was neither pending nor decided under any other proceedings.

Also Read

Vodafone Idea Receives Rs. 637.90 Crore GST Penalty Over Excess ITC Availment and Short Tax Payment

Issue Before Authority: Whether an exemption under Sl. No. 74 of Notification No. 12/2017–Central Tax (Rate) dated 28.06.2017 is available on healthcare services rendered for treatment of psoriasis, dandruff, dermatitis, anti-fungal infections and folliculitis.

Also Read

Vodafone Idea Receives Rs. 637.90 Crore GST Penalty Over Excess ITC Availment and Short Tax Payment

Authority’s Decision: The Authority examined the provisions of Notification No. 12/2017 and the definitions of “healthcare services” and “clinical establishment”. It was observed that the ailments treated by the applicant are recognised medical conditions requiring professional diagnosis and therapeutic care and are not cosmetic or aesthetic in nature. The records produced established that the services were rendered by qualified medical professionals within a recognised system of medicine. Therefore, it was held by the Authority that services relating to health care, including those offered because of psoriasis, dandruff, dermatitis, anti-fungal infections, folliculitis, and other similar dermatological conditions, are exempt from GST under Sl. No. 74 of Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017. To Read Full Judgment, Download PDF Given Below