GST under health care services on medicines, consumables, surgical items

In re M/s. Kinder Womens Hospital and Fertility Centre Private Limited (GST AAR Kerala)

The supply of medicines, consumables, surgical items, items such as needles, reagents etc used in laboratory, room rent used in the course of providing health care services to inpatients for diagnosis or treatment is eligible for GST exemption under health care services.

FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KERALA

M/s. Kinder Womens Hospital and Fertility Centre private Limited is providing superlative health care to women in Kerala. They render healthcare services categorizing the patients as in-patient (IP) and out-patient (OP) for administrative convenience. The out-patients are those who visit the hospital for routine check up or clinical visit. The in-patients are those who am admitted into the hospital for required treatment. Consolidated treatment package for IVF patients are also offered. The in-patients are provided with facilities like accommodation, medicines, consumables, implants, dietary foods including surgical procedures required for the treatment. As per Service Classification Code 9993, healthcare services by a clinical establishment, an authorized medical practitioner or paramedics have been exempted from tax. Accordingly, the applicant has requested advance ruling on the following:

Whether the supply of medicines, consumables, surgical items, items such as needles, reagents etc used in laboratory, room rent used in the course of providing health care services to in patients for diagnosis or treatments which are naturally bundled and are provided in conjunction with each other, would be considered as “Composite Supply” and eligible for exemption under the category ‘health care services’ under SI.No. 74 of Notification No.12/2017-CT(R) dated 28^th June, 2017.

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