Page 30 - GSTL_21st May 2020_Vol 36_Part 3

J56 GST LAW TIMES [ Vol. 36
A period of sickness basically is a timeline from commencement to verge of cure of
any illness. It does not cover recovery of a patient as recovery is not a part of sick-
ness but a comfort period of regaining proper health.
There are broadly three types of patients catered by health centres as
under :-
Category A patient can be considered as care for illness under health
care services definition.
Category B patient cannot be considered as care for illness as illness
phase is already over, for example when operation of knee replacement
in a hospital is done.
Category C patient cannot be considered as care for illness as well as the
said patient opts for health centres on its own for want of home care
medication.
Hence a patient who is under the period of illness or disease or injury is covered
under health care services definition, recovery of illness or injury falls outside that
definition thereby does not enjoy exemption.
A counter argument could be with respect to a patient who remains ad-
mitted in a hospital after an operation or for diagnosis and the centre’s bucket of
services. In such a case, an argument can be made in favour of levying GST tax.
The legal reply to such an argument is that a hospital provides a compo-
site supply of services to a patient whereby predominant and principal service is
of operating a patient. Rest other services of post operation care, physiotherapy
services, food, etc. is linked to principal service, hence exempt under GST.
Health centres’ principal service of care for illness or injury starts at dif-
ferent timeline of illness of a patient hence each service taxability is qua patient
and not qua service. Hence taxability of all services provided to a patient is appli-
cable for to his timeline of illness. Categorizing each such patient is quite difficult
and not viable too. Hence it is strongly advised to classify each different service
offered to patients as a taxable supply to avoid litigation in days to come. As far
as provisions of law is concerned, once we consider such services as taxable sup-
ply, GST would be attracted.
Health centres active under various business models and varied services
will need reconsideration from Government for taxability of GST!

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GST LAW TIMES  21st May 2020  30