'Well, Wellness Centres too are under GST net'

'Well, Wellness Centres too are under GST net'

Is a wellness centre a hotel or healthcare facility? And should the services offered at these places - weight reduction, ayurvedic treatment or yoga - face the same tax treatment as those offered at top hotels?

In what is set to increase the goods and services tax (GST) burden at several healthcare centres, a recent verdict by the Authority of Advance Ruling (AAR) has said that wellness packages offered by such centres will be covered under "composite supply."

The issue of whether an item or service such as wellness that is supplied with, say, accommodation, be taxed is determined based on how the service is provided. Under the GST framework, the supply of such items can be defined as a composite supply or a mixed supply. The tax department's stand on various issues means that the tax rates on certain bundled items would vary.