![]()
Supply Of Goods and Services To In-Patients As Part Of Healthcare Services
Is Constitutes A Composite Supply, And It Is Exempt From GST
Name of Applicant: M/s
Shalby Limited, Shalby Hospital, Opp Karnavati Club, S.G. Highway,
Ahmedabad-380015.
Ruling Order No.: GUJ/GAAR/R/11/2021
Date of Order: 20.01.2021
Ruling Authority Name: Gujarat
Authority for Advance Ruling, Goods and Services Tax, Ahmedabad.
Summary of Advance
Ruling: The applicant sought clarity on whether the supply of
medicines, surgical items, implants, consumables, and other allied items
provided to in-patients in the course of providing healthcare services, as well
as the supply of food and room on rent, constitutes a composite supply of
healthcare services and whether such services are exempt from GST.
Facts of the Case: M/s
Shalby Limited operates a chain of multispecialty hospitals across India. They
provide a range of healthcare services, including inpatient and outpatient
care, and offer facilities such as medicines, consumables, surgical implants,
dietary food, and room rent as part of the treatment for in-patients.
The hospital provides
these services as a package and charges the patients accordingly, without
separate contracts for the supply of goods.
Relevant Sections:
·
Section 2(30) of the CGST Act, 2017 –
Definition of Composite Supply.
·
Section 97 of CGST/GGST Act, 2017.
Question Raised:
·
Whether the supply of goods and services
to in-patients as part of healthcare services constitutes a composite supply,
and if so, whether it is exempt from GST.
Submission by Applicant:
·
The hospital contended that the supply of
medicines, surgical items, and other services to in-patients is a composite
supply of healthcare services, with the primary intent being the provision of
healthcare. They argued that such a composite supply should be exempt from GST
under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.
Finding by Ruling
Authority:
·
The authority examined the nature of
services provided by the hospital, including the supply of medicines, implants,
consumables, and room rent, which were deemed to be naturally bundled and
provided in conjunction with the primary service of healthcare.
Ruling:
·
The authority ruled that the supply of
medicines, surgical items, implants, consumables, and other allied items as
part of inpatient healthcare services, along with the supply of food and room
on rent, indeed constitutes a composite supply of healthcare services.
·
As a composite supply of healthcare
services, it is exempt from GST as per Notification No. 12/2017-Central Tax
(Rate) dated 28.06.2017.
Conclusion: The
applicant's services provided to in-patients, including the supply of
medicines, surgical items, and other services, are considered a composite
supply of healthcare services and are thus exempt from GST.
Disclaimer: All the
Information is based on the notification, circular and order issued by the
Govt. authority and judgement delivered by the court or the
authority information is strictly for educational purposes and on the
basis of our best understanding of laws & not binding on anyone.
Click here
