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CA Intermediate · Taxation · Exemptions from GST

Dr. Meera Hospital Pvt Ltd, Chennai, provides the following services in a month: (i) inpatient treatment of Rs 8,00,000 by clinical establishment; (ii) cosmetic surgery of Rs 3,00,000 not needed for restoring anatomy or function after trauma or disease; (iii) renting of a shop in the hospital premises for Rs 60,000. Assuming no other exemptions apply, which supplies are exempt from GST?

Only the inpatient treatment is exempt. Health care services by a clinical establishment are exempt, but cosmetic surgery not meant to restore anatomy or function after defect, trauma or disease is taxable, and renting a shop is a commercial letting that does not qualify as health care.

  1. AAll three supplies
  2. BOnly (i)Correct
  3. C(i) and (iii)
  4. D(i) and (ii)

Explanation

Health care services by a clinical establishment are exempt. Cosmetic or plastic surgery is exempt only if undertaken to restore or reconstruct anatomy or functions of the body affected by congenital defects, trauma or disease; this one is not. Renting of a shop is a commercial supply, taxable, and not a health care service. So only (i) is exempt.

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