Classification of service— In the instant case, the appeal stands filed against the Advance ruling Order pronounced by the Kerala Authority for Advance ruling.

The issue to be determined is, whether the placement of specified medical instruments by the appellant at the premises of unrelated hospitals, labs etc. in pursuance of the agreement for their use for a specific period constitute ‘supply’ as defined under the CGST/SGST Act, 2017.

The Hon'ble Authority for Advance ruling Kerala  held that the placement of specified medical instruments to unrelated customers like hospitals, labs, etc. constitute ‘Composite Supply’.

The appellant claims that the placement of specified medical instruments at the premises of the unrelated hospitals is without any consideration hence it cannot be categorised as taxable supply under GST Act.

Based on the facts, it is evident that the activity or transaction undertaken by the appellant qualifies to be categorised as "supply" as defined in Section 7 of the CGST Act, 2017. Accordingly, it is concluded that the placement of specified medical instruments to unrelated customers like Hospitals, labs etc for their use the appellant constitutes supply of services under CGST Act, 2017.

Held that— 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.

In nut shell, the Advance Ruling Order No. KER/97/2021 dated 07/05/2021 36 TAXLOK.COM 068 of the Advance Ruling Authority, Kerala stands upheld with aforesaid modification and consequently the appeal filed by the appellant is rejected.