Appellate Authority of Advance Ruling (AAAR) has modified an earlier ruling by the Gujarat Authority for AAR that had said 18% GST would be applicable on such health services.
As per the fresh ruling, health check-ups of employees organised by companies and conducted by doctors and nurses should be regarded as a medical service and should not face GST. The healthcare sector is exempt from GST. The authorities have also faced off with some other institutes that claim to provide wellness services.
In this regard the Gujarat AAAR has said, “We modify the ruling and hold that the supply of occupational health check-up services by the hospital, i.e. nursing staff, doctors and paramedical staff on the hospital’s payroll working in different corporates for providing health check-up services, ambulance facilities and allied medical services to their employees and also the camps conducted for health check-up outside the hospitals, to be treated as healthcare services and exempted under GST.”
The ruling is set to benefit many companies and even associations that tie up or rope in hospitals and doctors for routine check-ups within or outside hospital premises.