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2021 (12) TMI 35 - AAR - GSTClassification of supply - composite supply of services or not - health care services - Supply of medicines, consumables etc. to patients admitted in hospitals, exempt under notification No.12/2017 read with Section 8(a) of CGST or not - HELD THAT:- If a composite amount is charged from the patient admitted in the hospital for treatment, surgery or diagnosis including for medicines and other goods and services supplied in the course of treatment of the patient, and if the amount of such medicines and other goods and services is not segregable from the composite amount charged from the patient, then it is a Composite supply in terms of the Section 2(30) of CGST Act. 2017 in which healthcare service will be principal supply. and such Composite supply of healthcare services will be exempt from tax as per Sl. No. 74 of Notification No. 12/2017-CT (Rate), dt. 28.6.2017. But, if composite amount is not charged from the patient. and if the cost of medicines and other goods and services supplied in the course of treatment of a patient admitted in the hospital for treatment, surgery or diagnosis, is segregable from the amount charged for healthcare services, then it is not a Composite supply in terms of the Section 2(30) of CGST Act, 2017 and in that case the supply of medicines and other goods and services will not be exempt from tax as per SI. No. 74 of Notification No. 12/2017-CT (Rate), dt. 28.6.2017, but will be taxable at the rate applicable to the respective goods and services.
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