Membership healthcare service schemes by Multi-super speciality Hospital exempted from GST: Gujarat Authority for Advance Ruling

Ahmedabad: In a recent order, the Gujarat Authority for Advance Ruling has held that healthcare services provided under a membership scheme which is run by multi-super speciality hospital to its members and their families were non-taxable, and would not be facing any Good and Services Tax (GST).

According to the Economic Times, the health care services in which multi-super speciality hospitals receive a huge sum of money in the form of membership to provide services to their family would not have GST.

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An application was filed by Divyajivan Healthcare LPP, who had approached the AAR seeking clarity on GST levied on a membership plan in the proposed multi-super speciality hospital. The applicants had a tie-up with other Indian hospitals for the members to access the healthcare services.

This package is known as the diamond plan in which a huge amount of money is received for healthcare services provided for 20 years to the members and their families. The applicant had sought an advance ruling on the issue of whether this amount received should be exempted from GST according to the relevant notifications provided by the government.

The authority noted that since the scope of supply of services by the applicant comes under 'health care services', which are exempted from GST. It further stated that even though the applicant had tied up other hospitals for diagnosis, it did not alter the scope of supply of healthcare services by the applicant to its service recipients, reports the Economic Times.

The Authority for Advance Ruling is a quasi judicial body which assesses the potential tax liabilities for transactions beforehand. They provide case specific rulings, however, they often affect the tax assessment in cases of other firms under similar circumstances as well. 

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