9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (4) TMI 557 - AAR - GSTClassification of services - Health Care Services - Composite Supply or not - medicines, consumables and implants used in the course of providing health care services to in-patients for diagnosis or treatment for patients opting with or without packages along with allied services i.e. (room rent/food/doctor fees Etc.) provided by hospital - HELD THAT - The exemption is applicable to a Clinical Establishment , when services by way of diagnosis or treatment or care for illness, etc. are undertaken by such establishment under the directions of a medical doctor. The applicant hospital is a Clinical Establishment and for the health care services as defined in the Notification above provided including the supply of medicines, implants and consumables, rooms, food etc. they are exempt under Sl. No 74 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 - medicines, surgical items, implants, consumables and other allied items provided by the hospital through their hospital in house pharmacy used in the course of providing health care services as well as supply of food and room on rent to in-patients admitted to the hospital for diagnosis, or medical treatment or procedures is a composite supply of In Patient Healthcare Service. Supply of inpatient health care services by the applicant hospital as defined in Para 2(zg) of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended, is exempted from CGST as per Sl. No. 74 of the above notification. Reliance can be placed in the case of IN RE M/S. TERNA PUBLIC CHARITABLE TRUST 2019 (7) TMI 1331 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA where it was held that The supply of medicines, surgical items, implants, consumables and other allied items provided by the hospital through the hospital owned pharmacy, as well as food, room on rent to the in-patients is part of composite supply of health care treatment and hence not taxable under GST Laws.
Issues Involved:
1. Whether the supply of medicines, consumables, and implants used in the course of providing healthcare services to in-patients constitutes a "Composite Supply." 2. Whether such composite supply is eligible for exemption under the category "Healthcare Services." Issue-Wise Detailed Analysis: Issue 1: Composite Supply The applicant, a multi-specialty hospital, provides comprehensive healthcare services to both out-patients and in-patients, including stay facilities, medicines, consumables, surgical implants, dietary food, and other necessary items for treatment. The hospital charges in-patients for a package that includes room rent, nursing care, diagnostics, and other medical services under the directions of doctors. The term "composite supply" is defined under Section 2(30) of the CGST Act, 2017, as a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. In this case, the hospital provides a composite supply of health services, where the principal supply is the healthcare service itself, and the supply of medicines, consumables, and implants is incidental to the main service. This view is supported by Circular No.32/06/2018-GST dated 12.02.2018, which clarifies that healthcare services provided by clinical establishments include food supplied to in-patients as part of the composite supply and are not separately taxable. Issue 2: Eligibility for Exemption Healthcare services provided by a clinical establishment or an authorized medical practitioner or paramedics are exempt under Sl. No. 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The definition of "healthcare services" includes any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality, or pregnancy in any recognized system of medicines in India, and includes services by way of transportation of the patient to and from a clinical establishment. The applicant hospital qualifies as a clinical establishment and provides healthcare services, including the supply of medicines, implants, consumables, rooms, and food, which are exempt from CGST as per the mentioned notification. This interpretation is further supported by various rulings from different Authorities for Advance Ruling, which consistently held that the supply of medicines, consumables, and other allied items to in-patients as part of healthcare services constitutes a composite supply and is exempt from GST. Conclusion: The supply of medicines, consumables, and implants used in the course of providing healthcare services to in-patients, along with allied services such as room rent, food, and doctor fees, constitutes a "Composite Supply." This composite supply is eligible for exemption under the category "Healthcare Services" as defined in Para 2(zg) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. Thus, the supply of inpatient healthcare services by the applicant hospital is exempt from CGST as per Sl. No. 74 of the above notification.
|
