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GST Council grants mega relief to healthcare services & clarifies rates for many Services

Published: Jan 19, 2018

By TIOL News Service

NEW DELHI, JAN 19, 2018: APART from taking a bucketful of decisions, the GST Council also took certain decisions to issue many clarifications for the existing provisions of the GST laws. To provide relief to educational bodies, it has been clarified that the exemption of Rs 1000/- per day or equivalent (declared tariff) is available in respect of accommodation service in hostels also.

It has also been clarified that the fee paid by litigants in the Consumer Disputes Commissions and any penalty imposed by these Commissions, will not attract GST. Elephant or camel joy rides are not classified as transportation services and attract GST @ 18% with threshold exemption to small services providers.

In a major clarification the Council has stated that leasing or rental service, with or without operator, of goods, attracts same GST as supply of like goods involving transfer of title in the said goods. Therefore, the GST rate for the rental services of self-Propelled Access Equipment (Boom. Scissors/Telehandlers) is 28%.

Giving relief to the healthcare industry, it has been clarified that,

1) Services provided by senior doctors/consultants/technicians hired by the hospitals, whether employees or not, are healthcare services which is exempt.

2) Hospitals also provide healthcare services. The entire amount charged by them from the patients including the retention money and the fee/payments made to the doctors etc., is towards the healthcare services provided by the hospitals to the patients and is exempt.

3) Food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors is taxable.

The Council has further clarified that services by way of,-

1. admission to entertainment events or access to amusement facilities including casinos, race-course

2. ancillary services provided by casinos and race-course in relation to such admission.

3. services given by race-course by way of totalisator (if given through some other person or charged separately as fees for using totalisator for purpose of betting, are taxable at 28%. Services given by race-course by way of license to bookmaker which is not a service by way of betting and gambling, is taxable at 18%.