The Puzzle in Health Care Sector finally solved!
By: – Pragya Rajpurohit
Goods and Services Tax – GST
Dated:- 20-1-2018<\/p>\n
Introduction:
\nThe 25th GST council held on 18th January 2018 has finally resolved one of the jigsaw puzzles that have been mystifying the health care sector since 1st July 2017. GST had brought a paradigm shift in the indirect tax however some of the concepts like “bundled services” under the erstwhile service tax regime had been brought forward under a more broad term as “composite supply”. This term composite supply in GST also included the supply of goods unlike the pre GST regime. Health Care services provided by hospitals were exempt supplies however other supplies (if provided separately) like sale of medicaments; food, rental etc were subject to GST.
\nWhat was that concerning the health sector?
\nThe provision of “health care” services was exempt under entry 74 of the Notification 12\/2017 – Central Tax (Rate). The entry has been reiterated below<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n om rent, consultancy charges, food & beverages, bed charges, operation theatre rent, equipment charges, Doctor fees, pharmacy consumed. This type of supplies involved provision of both goods and services and one may have to look into the provisions of Section 8 of the CGST Act. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n above question and has clarified in the press release dated 18.01.2018 that all the supplies of goods or services to the patients shall be regarded as heath care services, hence giving a major relief. The text of the press release is reproduced below: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" The Puzzle in Health Care Sector finally solved!By: – Pragya RajpurohitGoods and Services Tax – GSTDated:- 20-1-2018 Introduction: The 25th GST council held on 18th January 2018 has finally resolved one of the jigsaw puzzles that have been mystifying the health care sector since 1st July 2017. GST had brought a paradigm shift in the … Continue reading “The Puzzle in Health Care Sector finally solved!”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-9987","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9987","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9987"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9987\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9987"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nSection 8 of the CGST Act provides the taxability of composite and mixed supply as under:
\nParticulars
\nTaxation
\nComposite Supply
\nTreated as a supply of principal supply and rate of GST will the rate at which the principal supply is taxed
\nMixed Supply
\nTreated as a supply of that particular supply which attracts the highest rate of tax.
\nAs per Section 2(30) a “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.
\nNow, if the surgical services were<\/p>\n
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\n“To clarify that,-
\n1) Services provided by senior doctors\/consultants\/technicians hired by the hospitals, whether employees or not, are healthcare services which is exempt.
\n2) Hospitals also provide healthcare services. The entire amount charged by them from the patients including the retention money and the fee\/payments made to the doctors etc., is towards the healthcare services provided by the hospitals to the patients and is exempt.
\n3) Food supplied to the in-patients as advised by the doctor\/nutritionists is a part of composite supply of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable.
\n Reply By PradeepKumar Kaura as =
\nThe author <\/p>\n
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