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.