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The Maharashtra Appellate Authority of Advance Ruling (AAAR) has dominated that the GST just isn’t relevant on costs collected underneath an unparalleled medical health insurance scheme.
The two-member bench of Rajeev Kumar Mital and D.Ok. Srinivas has noticed that the charges and different costs obtained from college students and recoupment costs obtained from sufferers would represent consideration for “outward supply.”
The appellant operates a “medical college” referred to as “Mahatma Gandhi Institute of Medical Science” in Village Sewagram, Dist. Wardha, which is linked to a medical laboratory referred to as “Kasturba Hospital.” The Appellant Society named its instructional unit “Mahatma Gandhi Institute of Medical Science” (MGIMS), adopted by naming its medical laboratory “Kasturba Hospital”.
The appellant/assessee society received registered voluntarily underneath the GST Act. It had not filed any returns until March 2019, since not one of the actions was within the nature of “business” in order to fall throughout the which means of “supply” as offered in Section 2(87) of the GST Act, and therefore it believed that it was not obliged to adjust to the provisions of the GST Act.
The appellant’s Unparalleled Health Insurance Scheme, wherein the nominal costs obtained to supply the good thing about decreased charges for illness investigations and remedy could also be handled as an advance in direction of the long run provision of well being care companies to scheme subscribers.
The applicant sought an advance ruling on the difficulty of whether or not the nominal costs obtained from sufferers in direction of an “unparalleled health insurance scheme” to retain their stream at one finish for the aim of imparting medical training and, in consequence, present them the good thing about concessional charges for investigations and remedy on the different finish would fall throughout the which means of “supply” and be eligible for exemption underneath the class of “educational and/or health care services.”
The AAAR held that the fees collected underneath the “Unparalleled Health Insurance Scheme” are to be thought-about an advance in direction of the availability of well being care companies to the subscribers of this scheme, and accordingly, any quantity collected in direction of this scheme won’t be topic to the levy of GST.
Appellant’s Name: M/s. Kasturba Health Society
Date: 05.12.2022
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