Medicines, implants, etc., used in medical treatment is a 'Composite Supply' of healthcare services; hence no GST is payable: AAR
[Royal Care Speciality Hospital Ltd., In re [2019] 110 taxmann.com 481 (AAR - Tamilnadu)]
The applicant is a multi-specialty hospital providing health care services. It has sought an Advance Ruling to determine whether the medicines, consumables, implants, etc., used in the course of
providing health care services to patients admitted in hospital would be considered as 'composite supply' of healthcare services and exempt from GST?
The Authority for Advance Rulings observed that the applicant provides medicines, consumables, implants, etc., to in-patients in the course of treatment for which a single bill is raised. On usage of medicines, consumable and implants, as prescribed by doctors and administered during stay of the patients, the treatment shall be complete. 'Composite supply' means two or more taxable supplies of goods or services or both which are naturally bundled and supplied in conjunction with each other in the course of business. Health care services provided by clinical establishments are exempt from GST. Therefore, the supply of medicines, implants and consumables used in providing health care services to patients are 'composite supply' of healthcare services which are exempt from GST.
[Royal Care Speciality Hospital Ltd., In re [2019] 110 taxmann.com 481 (AAR - Tamilnadu)]
The applicant is a multi-specialty hospital providing health care services. It has sought an Advance Ruling to determine whether the medicines, consumables, implants, etc., used in the course of
providing health care services to patients admitted in hospital would be considered as 'composite supply' of healthcare services and exempt from GST?
The Authority for Advance Rulings observed that the applicant provides medicines, consumables, implants, etc., to in-patients in the course of treatment for which a single bill is raised. On usage of medicines, consumable and implants, as prescribed by doctors and administered during stay of the patients, the treatment shall be complete. 'Composite supply' means two or more taxable supplies of goods or services or both which are naturally bundled and supplied in conjunction with each other in the course of business. Health care services provided by clinical establishments are exempt from GST. Therefore, the supply of medicines, implants and consumables used in providing health care services to patients are 'composite supply' of healthcare services which are exempt from GST.
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