GST
TRT-2025-
AAR Tamil Nadu
Date:-30-06-22
In:-
Issue Favourable to Tax Payer ?:- 0
Order Date: 30 June 2022
Facts:
- The Applicant, M/s BE Well Hospitals Private Limited, is a chain of multispecialty hospitals providing health care services through establishments in Tamil Nadu and Puducherry.
- The applicant in addition to the health care services, has pharmacy units in each clinical establishment at different locations, and supplies medicine to both in-patients and out-patients. Pharmacy charges GST on MRP basis against all the supplies provided to the patients including supplies to inpatients.
Issue:
- Whether the Supply medicines and consumables used in the course of providing health care services to in-patients and out-patient by pharmacy is eligible for exemption in terms of Notification 12/2017 CT (rate) read with Section 8(a) of GST?
Order:
- The Authority observed that the supply of medicines and consumables used in the course of providing health care services to in-patients admitted to the hospital for diagnosis, or medical treatment or procedures till discharge is a composite supply of in-patient healthcare service and the same is exempted from GST as per SI No 74 of the above said notifications.
- Further, Supply of medicines and consumables used in the course of providing health care services to out-patients admitted to the hospital for diagnosis, or medical treatment or procedures is not a composite supply and is hence taxable to GST.
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