Employee health check-ups shouldn't face any GST:
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 goods and services
tax, an Appellate Authority of Advance Ruling (AAAR) has
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.
The AAAR modified an
earlier ruling by the Gujarat Authority for Advance
Ruling (AAR) that had said 18% GST would be applicable
on such health services.
"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
Gujarat AAAR ruled.
The ruling, which was
made in a case filed by Vadodara-based Sunshine Global
Hospital, also said GST should not be levied even if
these check-ups were precautionary.