Order Date- 23 May 2022

Facts:

• The appellant, M/s. Baroda Medicare Private Limited is running 3 multi- specialty hospitals under the Brand name ‘Sunshine Global Hospitals’ at Manjalpur, Vadodara and Surat.
• The appellant had filed an application for advance ruling, wherein it raised two questions:

1. Whether the supply of medicines, surgical items etc. and other allied services & items provided by the hospital through their hospital in-house pharmacy, as well as food, room on rent, other services to the in-patients is part of the composite supply of health care treatment? 

     2. Whether the supply of Occupation Health Checkup (OHC) service by the hospital and the camps conducted for health check-up outside the hospitals, to be             treated as Health Care service?

• The GAAR examined the first issue and observed that Supply of inpatient health care services by the applicant hospital is exempted from CGST.  In respect to the OHC supply, the applicant will be liable to pay GST 18% on the payment received directly from the business entity for health services provided to employees of the business entities in relation to OHC or preventive care along with ambulance facility and allied medical services under “Human health and social care services” in terms of S. No. 31 of the table of the Notification No. 11/2017-Central Tax dated 28.06.2017.
• Aggrieved by the aforesaid Advance Ruling, to the extent ruling given in respect of question (ii), the appellant has filed the present appeal.

Order:

• The Appellate authorities observed that GAAR erred in holding that Health Care Services do not include the services of OHC Check-ups or preventive care. The Occupational Health Check-ups or preventive care is covered under Service Code 999312. The services to be provided by the appellant very well covers under the referred code. And that the entry specifically merits classification at Entry No. 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as the said Service Code is wide enough to cover general medical services consisting of the prevention, diagnosis and care and they can be provided in general practitioner’s practices and also delivered by outpatient clinics at home, in firms, schools etc or by phone, internet or other means.
• As per the definition of Health Care Services, it is clear that there is no disparity when provided by a clinical establishment to a patient inside the clinical establishment or outside the said establishment.
• The Gujarat AAAR modified the Advance Ruling and held that supply of OHC 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 dated 28.06.2017, as amended.