In re Jubilee Mission Hospital (GST AAR Kerala)
The Goods and Services Tax (GST) Authority for Advance Rulings (AAR) in Kerala has provided clarifications regarding the GST implications for Jubilee Mission Hospital, a multi-specialty healthcare institution. The hospital sought an advance ruling on the applicability of GST to medicines, implants, and other supplies provided to both inpatients and outpatients under various billing methods, including consolidated packages and separate invoicing.
The AAR reiterated that healthcare services provided by a clinical establishment are exempt from GST as per Serial No. 74 of Notification No. 12/2017 Central Tax (Rate). For inpatients, the AAR stated that supplies naturally bundled with healthcare services, where healthcare is the principal supply, would also be exempt under Section 8(a) of the CGST Act. However, the AAR declined to issue a definitive general ruling for various inpatient scenarios, such as “wholesome packages,” “limited packages,” or where items are “separately billed at actuals.” This is because the term “other required supplies” could encompass items that are not naturally bundled with healthcare services, such as facilities for bystanders, room rent exceeding 竄ｹ5,000 per day (which is specifically taxable), or cosmetic procedures. The taxability of such supplies would need to be determined on a case-by-case basis, depending on the exact nature of the supply.
