The Applicant renders medical services with help of experienced professionals like doctors, nursing staff, lab technicians, etc. Some patients are admitted in the hospital for the required treatment, while some are admitted for a day procedure and are offered a consolidated package including the value of consumables and medicines,etc.
The Applicant has sought advance ruling on whether the supply of medicine, consumables, surgical items, etc, used in the course of providing health care services to patients admitted for a day procedure would be considered as ‘Composite Supply’ and would be eligible for the exemption given to health care services?
The Authority for Advance Rulings, Kerala observed that the patients visit the hospital with basic intention of getting treatment for their ailment and when they are admitted to hospital they are under continuous monitoring of doctors & nursing staff, also the dosage of medication to be given is under control of doctors.
As per the GST Act, Composite supply means supply where a taxable person makes two or more taxable supplies of goods/services which are naturally bundled and supplied in conjunction with each other in the ordinary course of business.The patients who are admitted to the hospital are provided accommodation, food, medical facility as per the scheduled procedure and medicines prescribed by doctors are incidental/ ancillary to health care services.
The Authority for Advance Ruling, Kerala held that supply of medicines, consumables, surgical items used in the course of providing health care services to in-patients and patients admitted for a day procedure, would be considered as ‘Composite Supply’ and, hence,applicant is eligible to claim an exemption under GST.
Refer:Kindorama Healthcare (P.) Ltd., In re- [2019] 105 taxmann.com 224 (AAR - KERALA)
The Applicant has sought advance ruling on whether the supply of medicine, consumables, surgical items, etc, used in the course of providing health care services to patients admitted for a day procedure would be considered as ‘Composite Supply’ and would be eligible for the exemption given to health care services?
The Authority for Advance Rulings, Kerala observed that the patients visit the hospital with basic intention of getting treatment for their ailment and when they are admitted to hospital they are under continuous monitoring of doctors & nursing staff, also the dosage of medication to be given is under control of doctors.
As per the GST Act, Composite supply means supply where a taxable person makes two or more taxable supplies of goods/services which are naturally bundled and supplied in conjunction with each other in the ordinary course of business.The patients who are admitted to the hospital are provided accommodation, food, medical facility as per the scheduled procedure and medicines prescribed by doctors are incidental/ ancillary to health care services.
The Authority for Advance Ruling, Kerala held that supply of medicines, consumables, surgical items used in the course of providing health care services to in-patients and patients admitted for a day procedure, would be considered as ‘Composite Supply’ and, hence,applicant is eligible to claim an exemption under GST.
Refer:Kindorama Healthcare (P.) Ltd., In re- [2019] 105 taxmann.com 224 (AAR - KERALA)
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