Quarantine fee. GST applicability

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This query is : Resolved

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This discussion revolves around the applicability of GST on quarantine fees charged by an NGO-run centre. The core issue is whether providing a breakdown of charges, particularly for room rent, triggers GST liability. Experts clarify that quarantine services, when including medical care, nursing, food, and emergency facilities, are considered healthcare services and are generally exempt from GST, regardless of whether a breakup is provided. This exemption should hold even if the facility is temporarily set up in a converted marriage hall.

P.R.KABRA

P.R.KABRA (Querist)
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27 September 2020
We were quarantined In PUNE due to Covid 19 as we were +ve cases.

A NGO runs quarantine center after getting permission from PUNE Municipal Corporation and it is run with tie up with a private hospital.

It has charged us fee amounting Rs. 35000/- per person.

The NGO is not giving us Breakup of the amount but it is needed for Mediclaim.

The NGO says that if we give breakup, we will be liable to pay GST on it and we are not liable to pay GST if breakup is not given.

We are unable to get Mediclaim reimbursement from Insurance company if breakup is not given.

As per our knowledge there is no GST on health services. We are confused and hence request you to guide us on following points:

1. Is GST applicable on quarantine fees if breakup is given?
2. Is GST not applicable if breakup is not given?
3. Is GST applicable at all on quarantine fees where beds(rooms) are provided, doctors are appointed, senior doctors are visiting, nursing staff is there to look after the patients, food (tea, break fast, lunch, kadha etc.)is included, ambulance service is ready, x rays taken, oximeter, thermometer, blood pressure checked from time to time, Oxygen cylinders are kept ready in case of emergency, blood tests done, swab testing facilitated etc.

Please guide us urgently as our Mediclaims are held up.

Thanking you.

P. R. KABRA

P. R. KABRA

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 September 2020 1 and 2 GST not applicable on such health care services whether breakup given or not.
3 GST not applicable on all such services being health care services.

P.R.KABRA

P.R.KABRA (Querist)
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28 September 2020 Thank you R. SITHARAMAN Sir. Now nee turn has come. The NGO which is running the quarantine isolation centre owns a marriage hall. The marriage premises are converted into isolation centre. On receipts of marriage hall, it pays 18 percent GST. They are saying that if we give Room Rent in breakup, we will need to pay GST ON it or whole amount. Please guide further. Thanking you once again.

Lekhraj sood

Lekhraj sood (Expert)
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28 September 2020 The services as described by you will get covered under health care services and will be exempted from GST, as mentioned by my professional friend Mr.Seetharaman.
Coming to your issue, you should demand bill with all breakup to make your mediclaim. Even if they charge GST , your insurance claim will be inclusive of GST.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 September 2020 No GST applicable on marriage hall converted into isolation ward. It will fall under health care services.

P.R.KABRA

P.R.KABRA (Querist)
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28 September 2020 Thank you Lekhraj Sood Sir.

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