• Home
  • Article
  • Supply of Occupation Health Check-up Service by the hospital is exempted under GST

Meetu Kumari | Jul 10, 2022 | Views 15987

Supply of Occupation Health Check-up Service by the hospital is exempted under GST

Supply of Occupation Health Check-up Service by the hospital is exempted under GST

The appellant, M/s. Baroda Medicare Private Limited is running 3 multispecialty hospitals under the Brand name ‘Sunshine Global Hospitals’ at Manjalpur, Vadodara, and Surat.

The appellant filed an application for an advance ruling before the Gujarat Authority for Advance Ruling (GAAR) to decide on whether the supply of services & items provided by the hospital through their hospital in-house pharmacy, as well as food, room rent, other services to the in-patients, is part of composite supply of health care treatment; and hence not taxable under CGST / SGST. Also, if the supply of Occupational Health Check-up (OHC) service by the hospital to their employees and also the camps conducted for health check-ups outside the hospitals, to be treated as Health Care service and hence not taxable under CGST / SGST.

It was held by GAAR that the supply of medical items and health care services is a composite supply of In-Patient Healthcare services. The supply of inpatient health care services by the applicant hospital is exempted from CGST and the applicant will be liable to pay GST @ 18% (CGST @9% + SGST 9%) on the payment received directly from the business entity for health services provided to employees of the business entities in relation to Occupational Health Check-up (OHC).

GAAR has classified the service under major heading 9993 at Sr.31 the Notification No. 11/2017-CT (Rate) which has been granted an exemption under Sr. No. 74 of exemption Notification No. 12/2017-Central Tax (Rate) as amended. The GAAR has failed to examine whether the description of service provided by the appellant is covered within the description of service given at Sr. No. 74. The said service is covered within the description of service mentioned at Sr. No. 74 of the exemption notification. The definition of Health Care Service is similar to the GST regime as compared to Finance Act, 1994 which GAAR failed to appreciate.

It was noted that as the applicant has not submitted any agreement related to the occupational health check-up service proposed to be provided by it, either before the GAAR or this Authority, it was observed that the appellant has not started providing occupational health check-up services.

Therefore, the GAAAR modified the Advance Ruling of the Gujarat Authority for Advance Ruling in the case of M/s. Baroda Medicare Pvt Ltd, Sunshine Global Hospital with respect to Question No. 2 and held that supply of Occupation Health Check-up Service by the hospital i.e. nursing staff, Doctors, Paramedical staff on hospital’s payroll working in different corporate for providing health check-up services, ambulance facility, and allied medical services to their employees and also the camps conducted for health check-up outside the hospitals to be treated as Health Care Service and exempted under GST in terms of Entry at Sr.No.74 of Notification No.12/2017-Central Tax (Rate) and Notification No. 12/2017-State Tax (Rate), as amended.

To Read Ruling Download PDF Given Below:

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button

Join Membership

In case of Any Doubt regarding Membership you can mail us at contact@studycafe.in

Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"




Author Bio

My Recent Articles

NHM Recruitment 2022 for 75 Vacancies: Check Posts, Eligibility, and How to Apply TPSC Recruitment 2022 for 18 Vacancies: Check Posts, Qualifications and How to Apply ISRO Scientist/Engineers Recruitment 2022 for 68 Vacancies: Check How to Apply and Other Details RAILTEL Recruitment 2022: Check Posts, Age and How to Apply CRIS Recruitment 2022 for Manager: Check Post, Eligibility, Pay Scale, and Other Details View All Posts

Leave a Reply