In re ST. Thomas Hospital (GST AAR Kerala)
Composite supply where the principal supply is health care service which is exempted. The eligibility of credit of tax paid on the inputs and input services used for taxable as well as exempted supplies are governed by the provisions of section 17 (2) of the CGST act.
1. Whether the medicines, surgical items, implants, stents and other con-sumables used in the course of providing health care services to inpatients admitted to the hospital for diagnosis, or medical treatment or procedures would be considered as “Composite Supply” of health care services under GST and consequently can exemption under Notification No.12/2017 Central Tax (Rate) dated 28.06.2017 read with Section 8(a) of GST be claimed?
The supply of medicines, surgical items, implants, stents, and other consumables to inpatients admitted to the hospital for diagnosis, or medical treatment or procedures is a composite supply where the principal supply is healthcare services falling under SAC 999311 which is exempted as per entry at Sl No. 74 of Notification No.12/2017 Central Tax (Rate) dated 28.06.2017.
2. Whether the supply of food to all the inpatients would be considered as “Composite Supply” of health care services under GST and consequently can exemption under Notification No.12/2017 read with Section 8(a) of GST be claimed?
The supply of food to inpatients admitted to the hospital for diagnosis, or medical treatment or procedures is a component of the composite supply where the principal supply is healthcare services falling under SAC 999311 which is exempted as per entry at Sl No. 74 of Notification No.12/2017 Central Tax (Rate) dated 28.06.2017
3. Whether, for the availment of ITC on common purchase of medicines and surgical items which are ultimately supplied on actual basis to inpatients and outpatients, the following formulae is correct:
