IBEF: July 24, 2019
Authority of Advance Ruling (AAR) has provided the judgment on the India’s traditional system of medicines and allopathy-based system. Services like Naturopathy, Yoga, Ayurveda will fall under health care. It also states that such ‘health care services’ provided at clinical establishments by authorized medical professionals would be exempt from GST.
The case came before the AAR, Goa, when Devaaya Ayurveda & Nature Cure Centre, which is a provider of treatment services to patients through Ayurveda, Naturopathy and Yoga wanted to know if it succeeds as a clinical establishment and whether the services provided qualify to be health care services which are exempted under Central Tax (Rate).
Devaaya says it offers health services for both international and Indian patients for neuro-muscular problems, post-chemo therapy, post-radio therapy treatment, skin problems, metabolic issues like obesity, life style problems and orthopaedic problems like rheumatoid arthritis, osteoarthritis etc.
The team of doctors at the Devaaya are specialised in naturopathy, yoga and Ayurveda that takes body composition assessment and records detailed history of the problem or disease including present medication of the patient. Then this analysis is used to set medications, diet restrictions and daily treatments.
The place has an in-house pharmacy from where Ayurvedic products are distributed for treatment. Everyday treatment and follow up treatment are performed to know the development and responsiveness for the line of treatment prescribed
AAR considered the legal requirements and facts of the case. The services provided by the centre qualifies as appropriate diagnosis, appropriate medicines as well as relevant consumables or implants as part of treatment under supervision of qualified doctors. Thus, qualify as clinical establishment and the services proposed by it would qualify to be healthcare services.
Additionally, the Authority held that numerous treatments, supply of medicines, consumables and implants used in the process of delivering health care services to in-patients for diagnosis or treatment are naturally bundled and are provided in conjunction with each other and therefore, would be considered as 'Composite Supply". Hence, it is eligible for exemption under the category of healthcare services.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.