2018 (10) TMI 511 – AUTHORITY FOR ADVANCE RULINGS, KERALA – 2018 (18) G. S. T. L. 142 (A. A. R. – GST) – Levy of GST – supply of medicines and allied items through the pharmacy – composite supply – health care services by a clinical establishment – exemption under N/N. 12/2017-CT (Rate) dated 28.06.2017 – Held that:- Health care services provided by a clinical establishment, an authorized medical practitioner or para medics are exempted vide Sl.No.74 of Notification No. 12/2017-CT (Rate) dated 28.06.2017. The word 'clinical establishment' means a hospital, nursing home, clinic, sanatorium or any other institution by whatever name called, that offers services or facilities requiring diagnostics or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases.
–
In case of inpatient as
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
part of composite supply of health care treatment and hence not separately taxable.
–
The supply of medicines and allied items provided by the hospital through the pharmacy to the out-patients is taxable. – AAR No. KER/16/2018 Dated:- 19-9-2018 – SHRI. B.G. KRISHNAN AND SHRI. B.S. THYAGARAJABABU MEMBER Authorized Representative: Adv. K.N. Sreekumar. The applicant is rendering medical services with professionals like doctors, nursing staff, lab technicians etc. In GST scenario health care services by a clinical establishment, an authorized medical practitioner or para medicals have been exempted vide classification 9993. Medicines supplied through pharmacy to both inpatients and outpatients under the prescription of the doctors are incidental to the health care services rendered in the hospital and beyond the ambit of taxation. Hence the petitioner sought for an advance ruling on the liability of hospital under GST Act on the supply of medicines and allied items through the pharm
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ail. Health care services provided by a clinical establishment, an authorized medical practitioner or para medics are exempted vide Sl.No.74 of Notification No. 12/2017-CT (Rate) dated 28.06.2017. The word 'clinical establishment' means a hospital, nursing home, clinic, sanatorium or any other institution by whatever name called, that offers services or facilities requiring diagnostics or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases. Pharmacy is an outlet to dispense medicines or allied items based on prescriptions. Patients are admitted to a hospital only when they are extremely ill or have severe physical trauma. As far as an inpatient is concerned, hospital is expected to provide lodging, care, medicine and food as part of treatment under supervision till discha
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ospitals that are dispensing medicine to outpatients. Therefore pharmacy run by hospital dispensing medicine to outpatient or bye standers or others can be treated as individual supply of medicine and not covered under the ambit of health care services. Hence such supply of medicines and allied goods are taxable. Vide clarifications issued based on the approval of 25th GST Council Meeting held on 18-01-2018 [F.No.354/17/2018-TRU Dt.12-02-2018), it was clarified that food supplied to the inpatients as advised by the doctor/nutritionist is a part of composite supply of health care and not separately taxable. Other supplies of food by hospital to patients not admitted are taxable. The same principle is applicable in the case of dispensing of medicines also. In view of the observations stated above, the following rulings are issued: i) The supply of medicines and allied items provided by the hospital through the pharmacy to the in-patients is part of composite supply of health care treatme
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =