No GST Exemption for Nursing and Psychology Training Services Fee, Deemed Non-Healthcare: AAR [Read Order]

In a recent ruling, the Karnataka bench of the Authority for Advance Ruling ( AAR ) determined that fees for nursing and psychology training services do not qualify for Goods and Service Tax ( GST ) exemption, as they are deemed non-healthcare related. The applicant, Spandana Pharma is a Proprietorship Concern, registered under the provision of Central Goods and Services Tax Act, ( CGST ) 2017, as well as Karnataka Goods and Services Tax Act, ( KGST ) 2017 .It is engaged in the activity of providing health care services. It also runs a hospital in the name of Spandana Pharma. The applicant provided psychiatric services under the supervision of specialised Medical Doctors to in-patients aimed at curing, rehabilitating, restoring and/or maintaining the health of in-patients.

It was submitted that they provide practical training to nursing students and psychologists who are on the verge of completing course in recognized Educational Institutions. What nursing students and psychologists study in Educational institutions is theory They need practical tarining to gain practical knowledge. When Nursing students and Psychologists receive mental health training on successful completion of their course in the hospital run by the applicant they can attend to mental health and neurological illness of patients with mental disorders as well as the mental health needs of those suffering from infectious and chronic diseases. This will lead to better health outcomes.

Equipping students of nursing and psychologists with mental health skills promotes a more holistic approach to patient care and ensures both improved diction and prevention of mental disorders. Thus, according to the applicant, thetraining imparted to Nurses and Psychologists forms part and parcel of health care service. Hence, GST should be exempted on feecollected from Nurses and Psychologists However, the two-member bench of Dr.M.P.Ravi Prasad and Kiran Reddy. T, held that “GST is not exempted on the fees collected from nurses and psychologists for imparting practical training”.

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