The AAR Gujarat, in the matter of M/s Baroda Medicare (P.) Ltd., [Advance Ruling No. GUJ/GAAR/R/106 OF 2020 dated, December 30, 2020] has held that, the supply of medicines, surgical items, implants, consumables and other allied services & items provided by the hospital through their hospital in-house pharmacy, as well as food, room on rent, other services to the in-patients admitted to hospital for diagnosis, or medical treatment or procedures is part of composite supply of health care treatment service and is exempted under SI. No. 74 of the Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017 (“Services Exemption Notification”).
M/s Baroda Medicare Private Limited, (“the Applicant”) is running hospitals primarily under the brand name ‘Sunshine Global Hospitals’ and is operating as a multi-specialty hospital. The Applicant owns and run pharmacies and are rendering medical services with professionals like doctors, nursing staff, lab technicians etc. and during the course of treating the in-house patients admitted in the hospitals, medicines, surgical items, implants, consumables and other allied items are provided by them to such patients.
For proper care and watch by doctors/nurses, a room on rent and food from Hospital Canteens, under the supervision of dietician is also provided to the in-house patients as a part of overall health care. Out-patients (OPD patients) are also treated by the Hospitals. The inpatients are charged for all of these when they are admitted to the hospital which provides services to the in patients. Further, the Occupational Health Check-up (“OHC”) services are also provided by the Applicant i.e. nursing staff, doctors, paramedical staff on hospital’s payroll working in different corporate for providing health check-up service along with ambulance facility, and allied medical services to their employees. They also conduct the camps for health check-up outside the hospitals.
The AAR Gujarat, in Advance Ruling No. GUJ/GAAR/R/106 OF 2020 dated, December 30, 2020 held as under:
Sl. No 74 of the Services Exemption Notification:
|SI. No.||Heading||Description of Services||Rate||Condition|
|74||Heading 9993||Services by way of-
(a) health care services by a clinical establishment, an authorised medical practitioner or par-medics.
(b) services provided by away of transportation of a patient in an ambulance, other than those specified in (a) above.
Section 2(zg) of the Services Exemption Notification:
(zg) “health care services” means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;
S. No. 31 of the Notification No.11/2017 Central Tax (Rate) dated June 28, 2017:
|Sl. No.||Heading||Description of Service||Rate||Condition|
|31||Heading 9993||Human health and social care services.||9||–|
Section 2(30) of CGST Act:
“’composite supply’ means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;”
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