TMI Blog2021 (12) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... ply 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 Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t)) is multispecialty Hospital. equipped with latest infrastructure and competent medical staff. It aims at providing the best end to end primary health care and secondary health care services including diagnostics, basic and special medical and surgical services, treatments, etc. to patients. The Applicant is having a GST registration with GSTIN 23AAGCD 0903Q1Z0 for providing Health care services. 3.2 The applicant submitted that for effective operational and functional management/administration of provision of health care services, the applicant has categorized the patients as Out-patient and in-patient described as under : Outpatient arc people with health problem who visit the hospital for diagnosis or treatment. but do not requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) Pharmacy is an outlet to dispense medicines or allied items based on prescription. Patients are admitted to a hospital only when they are extremely it or have severe physical trauma for their physical stability and improvement. (iii) As far as an inpatient is concerned hospital is expected to provide lodging, care, medicine and food as part of treatment under supervision till discharge from the hospital. (iv) Inpatients receive medical facility as per the scheduled procedure and have strict restriction to ensure quality /quantity of items for consumption. Hence the medicine or allied goods supplied to impatients are indispensable items and it is a composite supply to facilitate health care services and it not taxable. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant has used the term used which means applicant has sought answer whether medicines, consumables, surgical etc. used in the course of providing healthcare services would be considered as composite supply or not. On this point, this office is of the view that only in the situation where healthcare service and medicines/surgical/consumable which are necessary for treatment are supplied by the hospital themselves to in-patient can only be considered as composite supply for the purpose of section 2(30) ibid. in case, pharmacy located in the hospital premises is owned by a separate person then medicines/surgical/consumables supplied by such pharmacy to the in-patient for use in the course of health core service provided by the hosp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re services to the patient admitted in the hospital for treatment, surgery or diagnosis would be considered as composite supply of health care services ? and (ii) Whether supply of medicines, consumables etc. to patients admitted in hospitals are exempt as per Notification No. 12/2017 read with Section 8(a) of CGST Act, 2017 ? 7.3. The applicant submitted that the medicines and other goods and - services supplied to inpatients are indispensable items and it is a composite supply to facilitate health care services and is not taxable. In this regard, if we go through the definition of Composite supply given under Section 2(30) of CGST Act, 2017 we find that the submission of applicant is partial') correct. If a composite amount is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alth care services. - This Authority rules that the medicines, consumables, Surgical, etc. used in the course of providing health care services. if it is provided to the patient admitted in the hospital for treatment, surgery or diagnosis would be considered as composite supply of health care services in terms of the Section 2(30) of CGST Act, 2017, if the amount of such medicines. consumables. Surgical, etc. is not segregable from the composite amount charged from the patient for treatment, surgery or diagnosis and is part of the package of the treatment and where principal supply is health care service by a clinical establishment, in case, pharmacy located in the hospital premises is owned by a separate person then medicines/surgical/cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
