• Notification Date: 12-01-2022
• Notification No: N/A

Multi-super Specialty Hospitals cannot Charge GST on Healthcare Services under Membership Plans

Gujarat Authority for Advance Ruling passes a recent tax ruling according to which there will be no goods and service tax (GST) charged against the healthcare services that are provided under a membership scheme provided by the multi-super specialty hospitals. These healthcare services provided to the members and the family will be free from tax according to this ruling.

The hospitals charge a high amount for issuing the membership scheme for the members and their families. According to the tax ruling declared by Gujarat Authority for Advance Ruling, this scheme does not attract any GST payment.

Divyajivan Healthcare LLP issued an application to the AAR asking for clarification on the levy of GST on a membership plan in its super-specialty hospital. The ruling came as a response to this application. The applicant consulted and tied up with other multi-super specialty hospitals n India. He wants the members of the scheme to avail healthcare treatments without GST payment.

The applicant has asked whether the healthcare services which is provided to the members for the last twenty years in the name of the “Diamond Plan” are exempted from GST charges. He has sought an advance ruling on this matter.

The Gujarat Authority has passed the new ruling which exempts the GST charges from the healthcare services under the membership plan provided by the hospitals. The ruling mentioned that the scope for supplying health care services by the applicant to the service recipient is not changed by the fact that he tied up with other hospitals. The rulings made by the Authority for Advance Rulings are based on the case. They have an impact on the tax assessments cases in other firms which are under similar circumstances.