Case Law Details
In re Dadaji Hospitals Private Limited (GST AAR Madhya Pradesh)
Whether the medicines, consumables, Surgical, etc. used in the course of providing health care services to the patient admitted in the hospital for treatment, surgery or diagnosis would be considered as composite supply of health care services?
This Authority rules that the medicines, consumables, Surgical, etc. used in the course of providing health care services, if it is provided to the patient admitted in the hospital for treatment, surgery or diagnosis would be considered as composite supply of health care services in terms of the Section 2(30) of CGST Act. 2017. if the amount of such medicines, consumables. Surgical, etc. is not segregable from the composite amount charged from the patient for treatment, surgery or diagnosis and is part of the package of the treatment and where principal supply is health care service by a clinical establishment. In case, pharmacy located in the hospital premises is owned by a separate person then medicines/surgical/consumables supplied by such pharmacy to the in-patient for use in the course of health care service provided by the hospital cannot be termed as composite supply. Moreover in the case where package is not applicable and the treatment, medicines, other supplies, and other items are charged to the patient separately at actual, and also in case supply of medicines and other supplies are being charged separately according to the type, brand (when choice available to the Patient) and quantity of items issued to the patients then it could not be classified as composite supply of healthcare service. It is also added here.
Supply of medicines, consumables etc. to patients admitted in hospitals exempted under Notification No.12/2007-CT(Rate) dated 28.06.2017 read with Section 8(a) of GST?
This authority rules that supply of medicines, consumables etc to the patients admitted in hospitals are exempted in Para 2(zg) of Notification No.12/2007-CT(Rate) dated 28.06.2017, only when it fulfils the condition as explained in ruling of question no- (i) and the conditions given in the said notification.
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