AAR says GST be imposed on wellness centres depending on services offered

Case, relates to applicant Oswal Industries; authority observes that three types of rooms are offered by the applicant and therapy is strictly on residential basis

Wellness facilities may become costlier for consumers with the Gujarat-based authority for advance rulings (AAR) calling for the imposition of 18 per cent goods and services tax (GST) on these services if such centres offer different packages depending on the category of rooms the customer has to choose from. 

The ruling may raise many questions, said experts. 

Explaining the case, Harpreet Singh, partner KPMG, said it relates to applicant Oswal Industries Limited, which operates Nimba Nature Cure Village near Gandhi Nagar in Gujarat. Its naturopathy centres offer physical, psychological and spiritual health services. 

The applicant said that it was exempt from service tax