Case Law Details
In re Innovations Medi research Private Limited (AAR Rajasthan)
AAR Rajasthan addresses two key questions regarding the composite supply of medicines and procedures for inpatients in hospitals. Firstly, it determines whether such supply qualifies as a composite supply. The ruling confirms that it does, considering the nature of various services bundled in the ordinary course of business.
Secondly, the ruling examines whether the principal supply, i.e., healthcare services falling under SAC 999311, is exempted under SI. No. 74 of notification no. 12/2017 CGST Rate dated 28-06-2017. Referring to relevant circulars and previous AAR rulings, the AAR Rajasthan concludes that the supply of medicines and allied items to inpatients through the hospital pharmacy is part of the composite supply of healthcare treatment and thus not separately taxable.
AAR Rajasthan rules that the supply of medicines and other procedures during treatment for inpatients in hospitals is a composite supply. Furthermore, it states that the supply of medicines and procedures to inpatients, where the principal supply is healthcare services falling under SAC 999311, is exempted as per entry at SI. No. 74 of notification no. 12/2017 CGST Rate dated 28-06-2017.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING,RAJASTHAN
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