TMI Blog2019 (5) TMI 901X X X X Extracts X X X X X X X X Extracts X X X X ..... undled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. As per Section 2(90) of the CGST Act, 2017, principal supply means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. The provision of services of supply of medicines, consumables, surgical items, items such as needles, reagents etc used in laboratory, room rent used in the course of providing health care services to in-patients is a composite supply as defined in Section 2 (30) of the CGST Act, 2017 and accordingly tax liability has to be determined in accordance with Section 8 of the CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssification Code 9993, healthcare services by a clinical establishment, an authorized medical practitioner or paramedics have been exempted from tax. Accordingly, the applicant has requested advance ruling on the following: Whether the supply of medicines, consumables, surgical items, items such as needles, reagents etc. used in laboratory, room rent used in the course of providing health care services to in-patients for diagnosis or which are naturally bundled and are provided in conjunction with each other, would be considered as Composite Supply and eligible for exemption under the category health care services under Sl.No. 74 of Notification no.12/2017-CT(R) dated 28 th June, 2017 The authorized representative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a composite supply, treatment is the principal supply which is predominant and the room-rent / medicines consumables / surgical items / items such as needles, reagents etc. used in laboratory, provided to in-patients are ancillary to the main supply of health care service. The matter was examined in detail. The patients visit the hospital with the basic intention of getting treatment for their ailment. Based on the severity of ailment and need for immediate or constant medical monitoring and care, the patient is admitted as in-patient. During the period of admission in the hospital, the patient is under continuous monitoring of doctor and nursing staff and administration and dosage of medication is all under the control of the do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision of health care services being the principal supply and the other supplies being dependent on the provision of health care services can only be considered as services ancillary to the provision of health care services. In view of the observations stated above, the following rulings are issued: Whether the supply of medicines, consumables, surgical items, items. such as needles, reagents etc. used in laboratory, room rent used in file course of providing health care services to in-patients for diagnosis or treatments which are naturally and are provided in conjunction with each other, would be considered as Composite Supply and eligible for exemption under the category health care services under Sl No. 74 of Not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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