Administering COVID-19 vaccine doesn’t qualify as healthcare service for GST exemption: AAAR

Case Details: Appellate Authority for Advance Ruling, Andhra Pradesh Krishna Institute of Medical Sciences Ltd. In re - [2023] 146 taxmann.com 274 (AAAR-Andhra Pradesh)

Judiciary and Counsel Details

• • Sanjay Pant & M. Girija Shankar, Member
  • K.V. Suresh Babu for the Appellant.

Facts of the Case

The applicant was a multi-specialty hospital and engaged in providing healthcare services. It filed an application for advance ruling to determine whether administration of COVID-19 vaccines by clinical establishments or hospitals would qualify as healthcare service and would be eligible for exemption.

AAAR Held

The Authority for Advance Ruling (AAR) held that it would be considered as supply of vaccine and would be taxable at 5% under GST. It filed appeal against the order.

The Appellate Authority for Advance Ruling observed that clinical establishment or hospital has to provide service by way of diagnosis/treatment/cure to patients affected with disease in order to avail exemption. However, in the instant case, the vaccination would be for protection against disease and it would be administered before getting affected by disease. Therefore, it was held that administering COVID-19 vaccine would not qualify as healthcare service and exemption would not be available.