GST Exemption for Therapeutic Dermatological Treatments in Kerala
The Kerala Authority for Advance Ruling confirmed that medical treatments for skin conditions like psoriasis and dermatitis are exempt from GST.
- Ruling
- ADVANCE RULING No. KER 37/2025 Dated 24.11.2025
- Dated
- 24 Nov 2025
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Advanced Hair Restoration India asked if specific skin treatments qualify for GST exemption.
- The Authority ruled that therapeutic care for medical ailments is exempt from GST.
- Purely cosmetic procedures, such as non-reconstructive hair transplants, remain taxable.
In short
The company asked if their dermatological treatments for conditions like psoriasis and dandruff qualify for the GST exemption available to clinical establishments. The Authority for Advance Ruling (AAR) examined whether these services count as healthcare under the existing tax rules. They decided that because these are recognized medical ailments, the services are exempt. However, they warned that aesthetic procedures meant only for appearance do not get this tax break.
What has changed
How it worked before
It was often unclear whether specialized skin clinics could claim the healthcare GST exemption for all their services, leading to uncertainty about which treatments were considered medical versus cosmetic.
What has changed
The ruling clarifies that therapeutic treatments for diagnosed skin conditions are exempt from GST. In practice, this means clinics can stop charging GST on these specific medical services, provided they are performed by qualified professionals in a clinical setting.
Who this affects
Skin clinics, dermatologists, and healthcare providers offering both medical and cosmetic services.
An example
A skin clinic in Kochi treats patients for severe eczema and also offers elective laser hair removal. Based on this ruling, the clinic can treat the eczema consultations and therapy as GST-exempt healthcare services. However, they must continue to collect and pay GST on the laser hair removal, as it is a cosmetic procedure. The clinic should maintain clear records distinguishing these two types of services to avoid tax disputes.
What you should do
If you run a similar clinic, review your service list to separate medical treatments from cosmetic ones. Remember that an Advance Ruling only binds the business that asked and its specific tax office; it is not a universal law for all clinics in India.
If you do nothing
If you incorrectly classify cosmetic services as exempt, you risk a tax demand for unpaid GST plus interest and penalties. A tax officer may disagree with your classification during an audit, and you cannot use another company's ruling as a legal defense for your own tax filings.
The terms explained
- Clinical establishment
- A hospital, nursing home, or clinic that is registered with the government to provide medical care and services.
- Healthcare services
- Diagnosis or treatment of illness, injury, or deformity in any recognized system of medicine in India.
- Advance Ruling
- A formal decision from the tax department on how GST laws apply to a specific business situation.
The ruling in detail
Authority for Advance Ruling
M/s. Advanced Hair Restoration India Private Limited
ADVANCE RULING No. KER 37/2025 Dated 24.11.2025 · Keralam
Questions before the authority
- Whether exemption is eligible on the healthcare services of treatment to psoriasis in skin and head, dandruff, dermatitis, anti-fungal treatment and folliculitis in accordance with Notification No.12/2017/Central Tax Rate dated 28.6.2017?
Facts
The applicant is a clinical establishment providing healthcare services including treatment for skin conditions like psoriasis, dandruff, dermatitis, and folliculitis. They employ qualified medical officers and dermatologists to provide these treatments. The applicant sought a ruling on whether these specific services qualify for GST exemption under the relevant notification.
Ruling
| Question | What the authority ruled |
|---|---|
| Exemption eligibility for treatment of psoriasis, dandruff, dermatitis, anti-fungal infections, and folliculitis | Yes, these services are exempted Exemption is under Sl. No. 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 |
The Authority ruled that the healthcare services provided by the applicant for the specified dermatological conditions are exempt from GST. It concluded that these services fall within the definition of healthcare services provided by a clinical establishment. However, the ruling clarifies that purely cosmetic procedures, such as hair transplants not intended to restore anatomy or function, remain ineligible for this exemption.
Reasoning
The Authority determined that the applicant qualifies as a clinical establishment and the services provided constitute healthcare services as defined in Notification No. 12/2017-Central Tax (Rate). The conditions treated are recognized medical ailments requiring professional diagnosis and therapeutic care, thus falling under the scope of illness or abnormality. The ruling relies on the definitions of healthcare services and clinical establishment provided in the notification. It distinguishes these therapeutic treatments from cosmetic or aesthetic procedures, which are explicitly excluded from the exemption.
Provisions relied on
- Section 97(2) of the CGST Act
- Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017
- Clause 2(zg) of Notification No. 12/2017-Central Tax (Rate)
- Clause 2(s) of Notification No. 12/2017-Central Tax (Rate)
For the practitioner
This ruling confirms that **therapeutic dermatological treatments** provided by a clinical establishment are eligible for GST exemption. It provides a clear distinction between medical treatment for recognized ailments and **purely cosmetic procedures** like hair transplants, which do not qualify for the exemption unless they are reconstructive. Practitioners can use this to support the tax-exempt status of clinical skin treatments while noting the strict exclusion of aesthetic services.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/advanced_hair_restoration_india_private_limited.pdf
Legibility of the scan, as read: high.
Prepared 14-10-2026.
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