According to a recent verdict of Authority of Advance Ruling (AAR), wellness packages offered by wellness centres will be covered under ‘composite supply’. Whether an item or service like wellness which comes with accommodation will be taxed or not will be based on how the service is provided. Tax experts highlight that accommodation services come with an understanding and context to hotels, inns, clubs, campsites, guest houses and places for residence or lodging.

In light of this, wellness centres could attract a GST of 5-12 percent depending on the number of rooms at resorts or centres. Partner-Indirect Taxes at KPMG, Harpreet Singh stated that this advance ruling has adopted a narrow interpretation of ‘healthcare services’ by excluding ancient yogic ways of treating illness or injury – what we call in modern times as wellness.