9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (2) TMI 229 - AAR - GSTExemption 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.
Issues Involved:
1. Composite Supply of Medicines, Drugs, and Consumables. 2. Composite Supply of Food to In-Patients. 3. GST Applicability on Retention Money. 4. GST Exemption on Fees Collected from Nurses and Psychologists for Practical Training. Summary of Judgment: Issue 1: Composite Supply of Medicines, Drugs, and Consumables The applicant sought to determine if the supply of medicines, drugs, and consumables used in providing health care services to in-patients qualifies as a "Composite Supply" under health care services, thus exempt from GST as per Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The Authority ruled that the primary purpose of the hospital is to provide treatment, and the supply of medicines, consumables, and food is an integral part of this service. Hence, these supplies are considered naturally bundled with the principal supply being health care services, qualifying for exemption under the said notification. Issue 2: Composite Supply of Food to In-Patients The applicant inquired if the supply of food to in-patients is a "Composite Supply" of health care services and exempt from GST. The Authority confirmed that food supplied to in-patients as advised by doctors or nutritionists is part of the composite supply of health care services and not separately taxable, as clarified in Circular No. 32/06/2018-GST dated 12.02.2018. Issue 3: GST Applicability on Retention Money The applicant asked if GST is applicable on retention money deducted by hospitals from payments made to consultant doctors and technicians. The Authority referred to Circular No. 32/06/2018-GST, which clarifies that the entire amount charged by hospitals, including retention money, is towards healthcare services and is exempt from GST. Issue 4: GST Exemption on Fees Collected from Nurses and Psychologists for Practical Training The applicant sought clarification on whether GST is exempt on fees collected for imparting practical training to nurses and psychologists. The Authority ruled that practical training does not fall under the definition of "healthcare services" as it does not involve diagnosis, treatment, or care for illness, injury, deformity, abnormality, or pregnancy. Therefore, GST is not exempt on these fees. Ruling: i. Supply of medicines, drugs, and consumables used in providing health care services to in-patients qualifies as a "Composite Supply" of health care services and is exempt from GST. ii. Supply of food to in-patients is considered a "Composite Supply" of health care services and is exempt from GST. iii. GST is not applicable on retention money. iv. GST is not exempt on fees collected from nurses and psychologists for imparting practical training.
|
