Page 72 - Knowledge Network Transform

the food charges being collected separately or the patients is collected and after retaining their
inclusively in the bill will not attract GST liability. cost, fees is paid to such hired doctors. In such
However, if the food is supplied by third party or situations the Board vide Circular dated 12.02.2018
outside agency then it becomes a taxable supply and has clarified that this is similar to jointly providing
GST will be charged to the recipients. the health care services to final patients or the
As far as the renting of hostel rooms is concerned customers and comes under health care services.
the same is non-taxable activity though here is no Hence the same is not taxable. They are not
specific exemption for that, but it is not taxable if the providing the service inter se, rather they are
supply definition is read with the clause B of together or jointly providing the services of health
schedule II of CGST Act, 2017. care to patients.
y Sometimes Joint Ventures are created wherein they
2. HOTELS - Hotels will include inns and guest
bring money, machine, and methods together in agreed
houses. Variety of the hotels is also a deciding
portions and share revenue accordingly. The same will
criterion for the rates of taxation. If the room rent is also come under providing health care services.
less than or equal to 7500/-per day the GST rate is
12% and for other cases being18%. If Hotels provide y Another way of operation is running owned
composite or bundled services of accommodation hospitals wherein the treatment and health care
along with garden, restaurants or catering then also services are provided directly and hence come
the deciding criterion will be room rent. under the purview.
As per serial number 14 of the notification no 11/ y The Board has further clarified in the circular that
2017 “Services by a hotel, inn, guest house, club or any other services or the facilities provided by such
campsite, by whatever name called, for residential hospitals like canteen, foods, medicines etc to in
or lodging purposes, having declared tariff of a unit house patients is normally bundled with the
of accommodation below one thousand rupees per treatment activity and hence are composite supply.
day or equivalent” attracted Nil rate of GST – this Healthcare services being the principal supply, the
exemption now stands withdrawn as per the CBIC exemption shall prevail, but also clarifying that this
rate notifications issued w.e.f. 18th July, 2022 (Eg: if cannot be the case for outside patients.
the room tariff is 100/- the same will attract GST
As per the CBIC rate notifications issued which are
subject to the threshold limit of INR 20 lakhs).
effective from 18thJuly 2022- hospital room rent
3. H O S P I TA L S - H o s p i t a l s , c l i n i c a l (except ICU) with tariff of more than 5,000 per day per
establishments, nursing homes or diagnostic person- GST @ 5% will be attracted and no credit of
centres are the suppliers of health care services inward supplies will be eligible. This amendment runs
which are specifically exempted from GST by virtue contrary to the principle of composite supply as also
of item no74 of notification no 12/2017. accepted by the board itself in the above circular. There
is also a denial of the provisions of the section 2(93) and
All the health care services except the plastic surgery section 8 of the CGST Act 2017, by this amendment and
or the beautification of the face or body are exempt.
as per my view the same is challengeable.
Services like plastic surgery or the beautification of
the face or body will also fall under exemption if As per my views and considering the points
these are provided to restore or to reconstruct the discussed above, the recent amendments in July
anatomy or functions of body. 2022 and explained by way of circulars of 3rd August
2022 need more clarifications. Withdrawal of these
Normally, the hospitals operate in various
exemptions by making amendments in the earlier
methodologies some of them being:
notifications has increased the purview of taxability
y Group of persons managing and running the of goods and services and will further increase the
hospital- The services here are hired from outside cost of such supplies in general.
doctors, consultants and physicians. Money from

00170 If you love life, don’t w
The purpose of our lives is to be happy.aste time, for time is what life is made up of.