The placement of specified medical instruments to unrelated customers like hospitals, labs etc for their use without any consideration for a specific period constitute “supply” as defined under Section 7 of the CGST Act, 2017.
Authority for Advance Ruling — GST on placement of medical instruments to unrelated customers for their use without any consideration – The applicant is engaged in the sale of pharmaceutical products, diagnostic kits, diagnostic instruments etc. As part of its business activity the applicant places specified medical instruments to unrelated hospitals, labs etc for their use for a specified period without any consideration. In order to execute the placement of instruments, the applicant enters into Reagent Supply and Instrument Use Agreement with various hospitals, labs etc. The Applicant sought an advance ruling as to whether the placement of specified medical instruments to unrelated customers like hospitals, labs etc for their use without any consideration for a specific period constitute a “supply” or whether it constitutes movement of goods otherwise than by way of supply as per provisions of the Act.
Held that:- The Hon’ble Authority for Advance Ruling held that the above transaction constitutes “supply” as defined under Section 7 of the Act, 2017.
The placement of specified medical instruments to unrelated customers like hospitals, labs etc for their use without any consideration for a specific period constitute “supply” as defined under Section 7 of the CGST Act, 2017.
Authority for Advance Ruling — GST on placement of medical instruments to unrelated customers for their use without any consideration – The applicant is engaged in the sale of pharmaceutical products, diagnostic kits, diagnostic instruments etc. As part of its business activity the applicant places specified medical instruments to unrelated hospitals, labs etc for their use for a specified period without any consideration. In order to execute the placement of instruments, the applicant enters into Reagent Supply and Instrument Use Agreement with various hospitals, labs etc. The Applicant sought an advance ruling as to whether the placement of specified medical instruments to unrelated customers like hospitals, labs etc for their use without any consideration for a specific period constitute a “supply” or whether it constitutes movement of goods otherwise than by way of supply as per provisions of the Act.
Held that:- The Hon’ble Authority for Advance Ruling held that the above transaction constitutes “supply” as defined under Section 7 of the Act, 2017.