‘Phytotherapy’ is not exempted under GST, Need to be registered: AAR [Read Order]

Phytotherapy - AAR - Taxscan

The Authority of Advance Ruling (AAR) West Bengal ruled that the ‘phytotherapy’ is not exempted under Goods and Service Tax (GST) and so it needs to be registered.

On an application filed by the applicant namely OPTM Health Care Private Limited, the Authority of Advance Ruling (AAR) observed that all the health care services are exempted from paying Goods and Service Tax (GST) and so it is not needed to get registered under Goods and Service Tax (GST). However, the word ‘phytotherapy’ is not included in ‘health care services’.

The applicant is engaged in providing the treatment called ‘Phytotherapy’ to cure osteoarthritis and disorders of similar nature. The applicant has invented these medicines that have been approved by the Drug Control Department under the category of Ayurvedic Medicine. Supplemented by physiotherapy, the medication is used for the treatment of osteoarthritis and disorders of similar nature.

The applicant sought ruling on the question that whether the services provided under the Phytotherapy is exempted under Serial No. 74 of the Exemption Notification; and is it necessary to stay registered under GST Act or not?

The Authority of Advance Ruling (AAR) consisting of members, Susmita Bhattacharya and Parthasarthi Dey ruled that the word ‘phytotherapy’ is not included in ‘health care services and as a consequence, the ‘phytotherapy’ is not exempted under Goods and Service Tax (GST) and so it needs to be registered. Also, it can not be claimed that the persons administering plant-based preparations are ‘Authorised Medical Practitioners’ in Ayurveda.

Therefore, the authority ruled that the ‘phytotherapy’ is not exempted under Goods and Service Tax (GST) Act and so it needs to be registered and is liable to pay Goods and Service Tax (GST).

Subscribe Taxscan Premium to view the Judgment
taxscan-loader