Page 122 - GSTL_23rd April 2020_Vol 35_Part 4

448 GST LAW TIMES [ Vol. 35
1136-FT, dated 28-6-2017), as amended (hereinafter collectively called “Exemp-
tion Notification”). It also wants to know whether it needs to stay registered un-
der the GST Act.
1.2 These questions are admissible under Section 97(2)(b) & (f) of the
GST Act. The concerned officer from the Revenue submits that questions raised
in the Application are not pending or decided in any proceedings under the GST
Act. As such, he does not object to the admissibility of the Application.
1.3 The application is, therefore, admitted.
2. Submissions of the Applicant :
2.1 The Applicant submits that the protocol of treatment which they
follow is called ”Phytotherapy”. The word “Phyto” means derived from plants.
The Applicant claims that food from rice, wheat have certain chemical com-
pounds to produce the shell of the human body. These chemicals are known as
phytochemicals. OPTM stands for “Organic Phyto Therapeutic Method”. The
phytochemicals are oil-based, produced from plants when they mature to give
fruits and flowers. Trees preserve these organic chemicals in their seeds too. The
applicant has invented these medicines that have been approved by the Drug
Control Department under the category of Ayurvedic Medicine. Supplemented
by physiotherapy, the medication is used for the treatment of osteoarthritis and
disorders of similar nature.
2.2 Before this ruling is pronounced the Applicant makes a further
written submission where it claims that it is making a composite supply with
health care service as the principal supply. Supply of medicine is ancillary to the
principal supply. In its clinics the patients suffering from osteoarthritis and dis-
orders of similar nature are being treated by qualified doctors applying the
unique phytotherapeutic methods. It is registered as a clinical establishment un-
der the West Bengal Clinical Establishments (Registration, Regulation and
Transparency) Act, 2017 (hereinafter the CE Act). Its composite supply of health
care service from a clinical establishment should, therefore, be exempt under En-
try No. 74 of the Exemption Notification.
2.3 Under Entry No. 74(a) of the Exemption Notification, health care
services by a clinical establishment, an authorised medical practitioner or para-
medics have been exempted from payment of GST. In para 2(s) of the said notifi-
cation clinical establishment is defined as a hospital, nursing home, clinic, sana-
torium or any other institution by whatever name called, that offers services or
facilities requiring diagnosis or treatment or care for illness, injury, deformity,
abnormality or pregnancy in any recognised 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. Apart from Allopathy, the
recognised systems of medicines in India consist of Ayurveda, Siddha, Unani
and Homeopathy and therapies such as Yoga and Naturopathy.
2.4 Although the Applicant is licensed as a physiotherapy centre, use of
ayurvedic medicines in the protocol of treatment shows, according to the Appli-
cant, that it actually provides ayurvedic treatment and should, therefore, be eli-
gible for exemption under the above entry of the Exemption Notification.
3. Submission of the Revenue :
3.1 The concerned officer from the Revenue has refrained from making
comments in this regard.

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