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2024 (2) TMI 229 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKAExemption from GST - Composite supply - health care services - supply of medicines, drugs and consumables used in the course of providing health care services to in-patients during the course of diagnosis and treatment during the patients admission in hospital - GST on Retention Money - exemption from GST on Fees collected from nurses and psychologists for imparting practical training - applicability of N/N. 12/2017-Central Tax (Rate) dated: 28-06-2017 read with Section 8(a) of GST - HELD THAT:- The Applicant is running a hospital and providing treatment to in-patients suffering from psychic disorder, substance use disorder, Neurology etc. The Applicant is a hospital hence, the same is covered under 'clinical establishment' as per the definition mentioned supra and since the hospital is providing treatment to inpatients suffering from psychic disorder, substance use disorder, Neurology etc the same is covered under “health care services” as per the definition mentioned supra. In view of the above, it can be said that the Applicant is providing health care services subjected to the condition that room charges are not exceeding Rs. 5000 per day to a person receiving health care services. The medicines, consumables and foods supplied in the course of providing treatment to the patients admitted in the hospital is an integral part of the health care service extended to the patients - Hence the room charges, medicines, consumables and food supplied in the course of providing treatment to the patients admitted in the hospital(in-patient) are undoubtedly naturally bundled in the ordinary course of business and the principal supply is health care service which is the predominant element of the composite supply - the food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not separately taxable. Whether GST is applicable on money retained by the applicant? - HELD THAT:- From Para 5(2) of Circular No. 32/06/2018-GST dated: 12-02-20218, it is clear that the entire amount charged by the hospital from the patients including the retention money and the fee/payments made to the doctors etc. is towards the healthcare services provided by the hospitals to the patients and is exempt. Whether GST is exempt on fees collected from nurses and psychologists for imparting practical training? - HELD THAT:- From the definition of 'healthcare services' it is understood that to become a health care service, it should be a service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy. But here the Applicant is providing practical training to nursing students and psychologists and hence the same is not covered under healthcare services.
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