No GST exemption on providing package comprising of accommodation, food & different types of health therapy: AAAR

Case Details: Appellate Authority for Advance Ruling, Gujarat Oswal Industries Ltd., In re - [2022] 139 taxmann.com 43 (AAAR-GUJARAT)

Judiciary and Counsel Details

• • Milind Torawane & Seema Arora, Member
  • Anil Gidwani, Adv. for the Appellant.

Facts of the Case

The appellant was providing Naturopathy treatment and offering package of accommodation, food and therapy. It filed an application for advance ruling to determine whether exemption would be available on health care services provided by it. The Authority for Advance Ruling (AAR) held that the exemption would not be available to the appellant as supply would be considered as composite supply with accommodation service as principal supply. It filed appeal against the order.

AAAR Held

The Appellate Authority for Advance Ruling observed that cost of room would form major part of consideration towards selected package. Moreover, the appellant was not providing care or treatment to outdoor patients and to indoor patients staying for less than 7 days. Since, the appellant would not fall under category of clinical establishment, therefore the exemption relating to healthcare services by clinical establishment would not be available to the appellant.

List of Cases Reviewed

• • Oswal Industries Ltd., In re [2020] 119 taxmann.com 269/[2021] 83 GST 261 (AAR – Guj.) (para 23) affirmed.
  • Commissioner of Customs (Import) v. Dilip Kumar & Company [2018] 95 taxmann.com 327/69 GST 239 (SC) (para 21.1) followed.
  • Alcon Resort Holdings (P.) Ltd., In re [2019] 107 taxmann.com 259 (AAR – Goa) (para 24) distinguished.

List of Cases Referred to

• • Alcon Resort Holdings (P.) Ltd., In re [2019] 107 taxmann.com 259 (AAR – Goa) (para 9.4)
  • Commissioner of Customs (Import) v. Dilip Kumar & Company [2018] 95 taxmann.com 327/69 GST 239 (SC) (para 21.1).