TMI Blog2020 (9) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... the other two components attain the nature of ancillary services. Classification - liability of tax - HELD THAT:- In view of Section 8 of the CGST Act, 2017, it can be seen that a composite supply comprising of two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply. Therefore, in the instant case, the composite supply of services would be treated as a supply of accommodation service falling under Heading 9963 and specific heading 996311 (Room or unit accommodation services provided by Hotels, Inn, Guest House, Club and the like) as per Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 - The composite supply of service provided by the applicant would be covered under Entry No. 7(vi) and 7(viii) of Notification No.11/2017-Central Tax (Rate). As per Entry No. 7(vi) above, rate of GST would be 18%(9% SGST + 9% CGST) in case of units having declared tariff rates of more than ₹ 2,500/- and less than ₹ 7,500/-, whereas as per Sr.7(viii) above, rate of GST would be 28%(14% SGST + 14% CGST) in case of units having declared tariff rates of ₹ 7,500/- or more. The said notification has been amended a fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one, which is why it is also known as Arista and every part of a nimba tree gives amazing health benefits. 2. The applicant has further stated that they provide different types of wellness facilities at Nimba such as Naturopathy, Ayurveda, Yoga and meditation, Physiotherapy and Special therapy and has described them in brief as under: (a) Naturopathy: It is an ancient and traditional science which integrates the physical, mental and spiritual aspects of our natural constitution and is a system working towards cure of diseases where all levels of the body are treated simultaneously and holistically. The principal aim of Naturopathy is to teach people the art of healthy living by changing their daily routine and habits which not only cures the disease but makes the bodies strong and glowing. It is therapeutic in itself and can be used to help cure and relieve many of today s illnesses and diseases. (b) Ayurveda: It is the science of life and ayurveda treatment puts emphasis on the fact that the human body is a part of cosmic system and focuses on eradicating the root cause of the disease. It addresses the problem as per the Prakriti (nature) of the individual. Ayurveda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough alternative therapies from traditional Chinese acupuncture treatment to ancient Egyptian cupping therapy, from reflexology to acupressure therapy and even hot stone therapy; that whether it is stress in mind or too many toxins in body or work related injury or age related problems, the experienced health professionals at Nimba are there to treat them. The applicant also stated that acupuncture therapy is considered to be very effective for weight loss, back pain and headaches; that applicant offers the chance to revive the crucial equilibrium of the five basic elements of life like earth, water, air, fire and ether; that human body is capable of healing itself by maintaining the effective balance of the mind, the body and the soul and if this balance deviates from the normal, it creates health complications and general disorder in the body systems and that patient can benefit from the distinctive synergism between modern science, traditional practices and ancient wisdom with professional guidance. The applicant has further stated that in pre-GST regime, the applicant had received letter from the department dated 10.03.2015 for clarification regarding registration under Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt services 606 999312 Medical and dental services 607 999313 Childbirth and related services 608 999314 Nursing and physiotherapeutic services 609 999315 Ambulance services 610 999316 Medical laboratory and diagnostic-imaging services 611 999317 Blood, sperm and organ bank services. 612 999319 Other human health services including homeopathy, unani, ayurveda, naturopathy, acupuncture and the like. 6. The applicant has stated that recently the Central Board of Indirect tax and Customs has issued Explanatory Notes to the Scheme of Classification of services on 12 th June, 2018 wherein it has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases; 7. The applicant has stated that a sanatorium is an institution that provides medical treatment and rest, often in a healthy climate, for people who have been ill for a long time for chronic disease such as tuberculosis etc; that India has the unique distinction of having six recognized system of medicine which are ayurveda, unani, yoga, naturopathy, siddha and homeopathy; that at Nimba, amid the serenity of nature and fresh air to soothe soul, patient can experience the goodness of the best wellness programs, rest in a comfortable wellness centre accommodation, enrich patient s body with organic nutrition, and enable the body to heal itself. The applicant has concluded his submission by stating that as per his understanding the service of clinical health provided by them under Heading No.9993 is eligible for exemption as per Sr.No.74 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017. 8. The applicant has given additional submission vide email dated 17.06.2020 wherein they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment administered to the patients is also by well qualified practitioners; they have supplied a list of doctors along with their qualifications; that in a recent decision by AAR, Goa-Alcon Resort Holdings (P).ltd. in Re (2019\0 107 taxmann.com 259 (AAR-GOA) the authority held that as the applicant was providing treatment under supervision of qualified doctors the same qualified as clinical establishment and the applicant was eligible for exemption under health care services as per Sl.No.74 of Notification No.12/2017-Central Tax(Rate); that the above treatment provided by the applicant is in lines with authoritative texts of Ayurveda, naturopathy and yoga and the treatment is performed by trained medical professionals and doctors who have studied the subjects; that the diagnosis, treatment or care is done through recognised system of medicine in India such as naturopathy, ayurveda, yoga and physiotherapy which fall under the Clinical Establishments Act; that in a ruling by the Advance Ruling Authority in the case of M/s. Sayre Therapuetics private limited 2018-TIOL-37-AAR-GST, the authority first looked into whether the service imparted was under a recognized system of medicine or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shment Act, 2010 is passed by the Indian Parliament and deals with healthcare. public health and sanitation, hospitals and dispensaries is matter in which the state legislature exercises power to make laws in terms of entry 6 of list II of Schedule VII of The Constitution of India. Therefore for the Clinical Establishment Act, 2010 to have force in the State of Gujarat, the same needs to be adopted by passing a resolution under Article 252 of the Indian Constitution by the Legislature of the State of Gujarat. For the Clinical Establishment Act, 2010 no resolution has been passed by the Hon ble Legislative Assembly for the State of Gujarat and hence registration under the Act is not at all applicable in the State of Gujarat. Therefore it is humbly submitted that it is not at all possible to get Clinical Establishment Act registration in the State of Gujarat. The applicant has concluded his submission by stating that in view of the above facts, they should be allowed the exemption claim under the GST regime in terms of Sl.No.74 of Notification No.12/2017-Central Tax (Rate). He has put forward the following question for advance ruling: Whether the applicant is eligible to get ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 999311 Inpatient services 606 999312 Medical and dental services 607 999313 Childbirth and related services 608 999314 Nursing and physiotherapeutic services 609 999315 Ambulance services 610 999316 Medical laboratory and diagnostic-imaging services 611 999317 Blood, sperm and organ bank services. 612 999319 Other human health services including homeopathy, unani, ayurveda, naturopathy, acupuncture and the like. 14. Before delving into the aspect of applicability of notification, we find it prudent to examine whether the services fall within the classification a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, Club and the like .(Sub-heading 996311) (ii) Food The programme also involves supply of food to the customers during the stay-in period. Since food and other room services are also provided alongwith it, the same would be covered under Services provided by Hotels, Inn, Guest House, Club and the like including room services, takeaway services and door delivery of food .(Sub-heading 996332) (iii) Therapy Various therapies are provided to the class of persons who check-in the chosen type of room and avail of the food services. Under this category, human health services are also being provided by the applicant which would be covered under Other human health services including homeopathy, unani, ayurveda, naturopathy, acupuncture and the like .(Sub-heading-999319) 15.1 In the above circumstances, the issue of composite supply, as defined as per Section 2(30) of the CGST Act, 2017 comes in play and the same reads as under: composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly of such principal supply; and (b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax. 16.1 So, in view of Section 8(a) above, it can be seen that a composite supply comprising of two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply. Therefore, in the instant case, the composite supply of services would be treated as a supply of accommodation service falling under Heading 9963 and specific heading 996311 (Room or unit accommodation services provided by Hotels, Inn, Guest House, Club and the like) as per Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 . Further, the supply of service namely Accommodation food and beverage services finds mention at Entry.No.7 of the above notification and reads as under: Sl.No. Chapter, Section or Heading Description of services Rate (per cent.) Condition 7. Heading 9963 (Acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into consideration by the applicant, while discharging their service tax liabilities. 17. Now, we come to the question for advance ruling raised by the applicant, which reads as under: Whether the applicant is eligible to get the benefit of entry No.74 of exemption Notification No.12/2017-Central Tax (Rate) dated 28.06.2017? On going through the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, entry No.74 of the said notification reads, as under: Sl. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of services Rate (per cent.) Condition 74 9993 (a) Services by way of (a) health care services by a clinical establishment, an authorised medical practitioner or para-medics ; (b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above. NIL NIL From the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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