Subscription-based elder care faces 18% GST: AAR

The GST-Authority for Advance Rulings (AAR) has held that a subscription-based elder care programme provided to senior citizens living alone — comprising medical check-ups at home and logistic support in terms of medicine & grocery deliveries, helping with bank work and utility bill payments – is not tax-exempt.

Three subscription packages were provided by the startup entity Snehador Social & Health Care Support. Senior citizens could enrol in a package best suited to their needs. The packages had an annual registration fee, a quarterly fee and a refundable security deposit. Services provided are not ‘health care services’ that are GST-exempt but are in the nature of ‘human health and social care services’ and would attract goods and services tax (GST) at 18%, ruled the AAR.