The supply of medicines, implants, and other items to the inpatients admitted to the hospital for treatment as per the package offered by the hospital is a composite supply where the principal supply is healthcare services falling under SAC 999311 which is exempted as per entry at SI No. 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.
Authority for Advance Ruling —Taxability on various Healthcare Services – The applicant holding income tax exemption certificate under Section 12A of the Income Tax Act, is running a multi- specialty hospital and institutes for medical education. The applicant sought an advance ruling as to whether GST is leviable on the value of supply of medicine, implants and other supplies issued to our patients during the course of treatment, who are admitted as inpatients in the different situations; who are not admitted but undergoing treatment as outpatients in certain situations.
Held that:- The Hon’ble Authority for Advance Ruling held that when the patients are admitted, it is a composite supply of which the principal supply is healthcare services and the other supplies are only incidental or ancillary to the supply of healthcare services. Therefore, the supply of medicines, implants, and other items to the inpatients admitted to the hospital for treatment as per the package offered by the applicant is a composite supply falling under SAC 999311 which is exempted as per entry at SI No. 74 of Notification No. 12/2017-CTR dated 28.06.2017. In the cases where the patients are not being admitted in hospital but the hospital is providing treatment to those patients as an outpatient. The services provided in the course of the treatment of such patients fall within the scope of healthcare services as defined in Para 2 (zg) of the Notification No. 12/2017-CTR dated 28.06.2017 and is exempted from GST as per entry at SI No. 74 of the said notification. The supply of medicines and allied items by the pharmacy run by the hospital can only be treated as an individual supply of medicine and allied items and therefore is liable to GST at the rates applicable for each such item as per the GST Tariff Schedule.
The supply of medicines, implants, and other items to the inpatients admitted to the hospital for treatment as per the package offered by the hospital is a composite supply where the principal supply is healthcare services falling under SAC 999311 which is exempted as per entry at SI No. 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.
Authority for Advance Ruling —Taxability on various Healthcare Services – The applicant holding income tax exemption certificate under Section 12A of the Income Tax Act, is running a multi- specialty hospital and institutes for medical education. The applicant sought an advance ruling as to whether GST is leviable on the value of supply of medicine, implants and other supplies issued to our patients during the course of treatment, who are admitted as inpatients in the different situations; who are not admitted but undergoing treatment as outpatients in certain situations.
Held that:- The Hon’ble Authority for Advance Ruling held that when the patients are admitted, it is a composite supply of which the principal supply is healthcare services and the other supplies are only incidental or ancillary to the supply of healthcare services. Therefore, the supply of medicines, implants, and other items to the inpatients admitted to the hospital for treatment as per the package offered by the applicant is a composite supply falling under SAC 999311 which is exempted as per entry at SI No. 74 of Notification No. 12/2017-CTR dated 28.06.2017. In the cases where the patients are not being admitted in hospital but the hospital is providing treatment to those patients as an outpatient. The services provided in the course of the treatment of such patients fall within the scope of healthcare services as defined in Para 2 (zg) of the Notification No. 12/2017-CTR dated 28.06.2017 and is exempted from GST as per entry at SI No. 74 of the said notification. The supply of medicines and allied items by the pharmacy run by the hospital can only be treated as an individual supply of medicine and allied items and therefore is liable to GST at the rates applicable for each such item as per the GST Tariff Schedule.