Sale of medicine in hospital services was not taxable separately if it was part of composite healthcare service

Assistant Commissioner Vs Kota Eye Hospital and Research Foundation (Rajasthan High Court)

Conclusion: In case of rendering of health care/medical services and not supply of goods, the value recovered by the hospitals towards the cost of medicines, implants, stents, lenses and various other charges towards room rent, supply of food could not be classifiable as sale or supply of goods but the transaction would  be of service on account of Predominant Test/ Aspect Doctrine.

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