Q. 1. Does the sale of low-vision glasses by a healthcare NGO to patients who received screenings (but not clinical treatment) qualify as an incidental sale for tax and regulatory purposes? It can be termed as preventive health care preventing further deterioration of eyes and other related body parts.
Low-vision glasses neutralizes painful glare and light sensitivity common in glaucoma and cataracts and decreases the neurological strain required to process blurred or distorted images, besides helping one see clearly.
Q. 2. Does the sale of corrective glasses by a healthcare NGO to patients who received an eye check-up (but not clinical treatment) qualify as an incidental sale for tax and regulatory purposes?
Thanks Manoj. If Medical Relief is a charitable object and this NGO works in the area of ophthalmology within health in its charter, sale of both low vision and corrective glasses should qualify as business income incidental to achievement of object since glasses are an integral part of eye care and also are not undertaken as a standalone activity by the NGO. Additionally, separate books of accounts to be maintained as required for business incidental as in Section 345 of ITA 2025.
The point of preventive health is more relevant from the point of applicability or otherwise of GST for such business income. In our understanding, this activity does not clearly fall under the definition of charitable activities in the Notification 12/2017 which mentions public awareness of preventive health. The above activity is promotive healthcare.