Services of regular medical monitoring with other logistic support as provided by the applicant to senior citizens at their doorstep does not qualified for exemption and liable to Goods and Services Tax at 18% ruled by the Authority for Advance Ruling( AAR ), West Bengal.
The authority observed that the applicant engaged in providing services to its enrolled members under two limbs.
The first one, which is against a consolidated package amount, comprises inter alia of care manager visit for medical checkup, general physician home visit and home delivery of medicine.
The other part also covers services by general physicians, nurses and care managers for which the applicant charges separately.
The applicant, Snehador Social & Health Care Support LLP, is in the business of providing senior citizens with health care services, including arranging doctors, nurses, transporting clients to diagnostic facilities, providing oxygen, and providing physical support as needed.
In addition to this, the applicant also provides services to its members for delivery of medicines and grocery items at home, helping with bank work, utility bill payment etc.
The issue placed before the bench is to determine the rate of tax on the instant supply of services. Further to determine whether the services rendered by the applicant for health care to senior citizens at their doorstep comes under the exemption category and what will be the classification of such services.
The applicant has submitted that it aims to create a community where seniors can lead a physically and emotionally healthy and dignified life.
Further, the applicant provided services for accompanying members for essential & social outings, accompanying members to the Bank & Post Office, organising social gathering and entertainment programmes etc.
After considering the contentions of the applicant, the bench of Brajesh Kumar Singh and Jyojit Banik concluded that the services provided by the applicant can be termed as ‘human health and social care services’ and is taxable at 18%.
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