Your dazzling smile will cost you GST @ 18% : AAR

Your dazzling smile comes at a price. Your dental bill, for services like teeth whitening or application of veneer (also known as smile-fixing treatment), will be subject to a levy of Goods and Services Tax (GST) at 18%.

The GST-Authority for Advance Rulings (AAR), Maharashtra bench, in its recent ruling, has distinguished between dental services that would be in the nature of ‘healthcare services’ and those that will constitute a ‘cosmetic treatment’. Only dental services that can be categorized as healthcare services will be exempt from the tax.

The advance ruling was sought by Jyoti Ceramics, which in addition to manufacturing and supplying ceramic material used for making dental crowns and artificial ceramic teeth, also runs a dental clinic. Services provided at the dental clinic, include all dental treatment, including bleaching or whitening of teeth and affixing dental veneers. The latter, also known as smile-fixing treatment, involves fixing of thin custom-made ceramic shells (veneers) that cover the front surface of teeth and improve appearance.

The AAR bench observed that ‘healthcare services’ under the GST laws means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy, in any recognized system of medicine in India. It also includes transport services of the patient to and from a clinical establishment. However, it does not include hair transplant or cosmetic or plastic surgery, except if it is undertaken to reconstruct anatomy or function of a body part affected owing to congenital defects, development abnormalities, injury or trauma.

Given the above definition, the AAR held that services such as bleaching of teeth and smile-fixing treatment would not be healthcare services and would attract 18% GST. As regards fixing of artificial teeth, crowns and bridges, the AAR held that these would be subject to nil GST if these are provided as healthcare services and not for cosmetic purposes.

While rulings given by the AAR do not set a judicial precedent, they do have a persuasive effect in similar cases.

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