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TMI Blog2019 (5) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... . The in-patients are those who are admitted into the hospital for required treatment. Consolidated treatment package for IVF patients are also offered. The in-patients are provided with facilities like accommodation, medicines, consumables, implants, dietary foods including surgical procedures required for the treatment. As per Service Classification Code 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-p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in-patients / patients who undergo day procedure such as IVF, admitted for diagnosis or treatment in the hospital or clinical establishment are naturally bundled in ordinary course of business. Without administering the medicines and use of the consumables or surgical items, appropriate health care service cannot be provided, thereby exposing the in-patients to fatality. Being 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, 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 and patients admitted for a day procedure such as IVF for diagnosis or treatments 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 Act, 2017. In this case the provision 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: ..... X X X X Extracts X X X X X X X X Extracts X X X X
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