In re Bamapada Jana (GST AAR West Bangal)
In the case of In re Bamapada Jana, the applicant sought an advance ruling on whether their catering services, involving food supply to inpatients at the Central Hospital of South Eastern Railway, qualify as exempt under GST Notification No. 12/2017. The applicant argued that food served to inpatients, as prescribed by medical officers, constitutes a composite supply of healthcare services, which is exempt from GST. Relying on contractual terms, the applicant emphasized that their role involves preparing and serving meals strictly adhering to the dietary recommendations of hospital authorities within the premises. Citing similar rulings and Circular No. 32/06/2018, the applicant claimed their services are not taxable.
The Authority for Advance Ruling (AAR) reviewed the applicant’s submissions and contractual obligations. It observed that the hospital provided a designated kitchen area and that the applicant followed dietary guidelines specified by medical practitioners. While Notification No. 12/2017 exempts healthcare services provided by clinical establishments, including food supply as part of a composite service, AAR highlighted that the exemption applies if such services are integral to healthcare. Concluding, the AAR determined that since the applicant’s catering services were an intrinsic part of the hospital’s inpatient care and not outsourced in the traditional sense, they are exempt from GST.
