If a composite amount is charged from the patient admitted in the hospital for treatment, surgery or diagnosis including for medicines and other goods and services supplied in the course of treatment of the patient, and if the amount of such medicines and other goods and services is not segregable from the composite amount charged from the patient, then it is a Composite supply in terms of the Section 2(30) of CGST Act, 2017 in which healthcare service will be principal supply and such Composite supply of healthcare services will be exempt from tax.
Classification of service— In the instant case, applicant is multispecialty Hospital.
The following two questions have been raised by the applicant:-
(i) Whether the medicines, consumables, Surgical. etc. used in the course of providing health care services to the patient admitted in the hospital for treatment. surgery or diagnosis would be considered as composite supply of health care services.
(ii) Supply of medicines, consumables etc. to patients admitted in hospitals exempted under notification No.12/2017 read with Section 8(a) of CGST'?
Held that— On question number (i) - Whether the medicines, consumables. Surgical. etc. used in the course of providing health care services to the patient admitted in the hospital for treatment, surgery or diagnosis would be considered as composite supply of health care services. - This Authority rules that the medicines, consumables, Surgical, etc. used in the course of providing health care services. if it is provided to the patient admitted in the hospital for treatment, surgery or diagnosis would be considered as composite supply of health care services in terms of the Section 2(30) of CGST Act, 2017, if the amount of such medicines. consumables. Surgical, etc. is not segregable from the composite amount charged from the patient for treatment, surgery or diagnosis and is part of the package of the treatment and where principal supply is health care service by a clinical establishment, in case, pharmacy located in the hospital premises is owned by a separate person then medicines/surgical/consumables supplied by such pharmacy to the in-patient for use in the course of health care service provided by the hospital cannot be termed as composite supply. Moreover in the case where package is not applicable and the treatment, medicines, other supplies, and other items are charged to the patient, separately at actual, and also in case supply of medicines and other supplies are being charged separately according to the type, brand(when choice available to the patient), and quantity of items issued to the patients then it could not be classified as composite supply of healthcare service.
In respect to question no. (ii) Supply of medicines, consumables etc. to patients admitted in hospitals exempted under notification No.12/2017 read with Section 8(a) of GST'? - This authority rules that supply of medicines, consumables etc to the patients admitted in hospitals are exempted in Para 2 (zg) of Notification No. 12/2017-CT (Rate), dt. 28.6.2017, only when it fulfils the condition as explained in ruling of question no-(i) and the conditions given in the said notification.
If a composite amount is charged from the patient admitted in the hospital for treatment, surgery or diagnosis including for medicines and other goods and services supplied in the course of treatment of the patient, and if the amount of such medicines and other goods and services is not segregable from the composite amount charged from the patient, then it is a Composite supply in terms of the Section 2(30) of CGST Act, 2017 in which healthcare service will be principal supply and such Composite supply of healthcare services will be exempt from tax.
Classification of service— In the instant case, applicant is multispecialty Hospital.
The following two questions have been raised by the applicant:-
(i) Whether the medicines, consumables, Surgical. etc. used in the course of providing health care services to the patient admitted in the hospital for treatment. surgery or diagnosis would be considered as composite supply of health care services.
(ii) Supply of medicines, consumables etc. to patients admitted in hospitals exempted under notification No.12/2017 read with Section 8(a) of CGST'?
Held that— On question number (i) - Whether the medicines, consumables. Surgical. etc. used in the course of providing health care services to the patient admitted in the hospital for treatment, surgery or diagnosis would be considered as composite supply of health care services. - This Authority rules that the medicines, consumables, Surgical, etc. used in the course of providing health care services. if it is provided to the patient admitted in the hospital for treatment, surgery or diagnosis would be considered as composite supply of health care services in terms of the Section 2(30) of CGST Act, 2017, if the amount of such medicines. consumables. Surgical, etc. is not segregable from the composite amount charged from the patient for treatment, surgery or diagnosis and is part of the package of the treatment and where principal supply is health care service by a clinical establishment, in case, pharmacy located in the hospital premises is owned by a separate person then medicines/surgical/consumables supplied by such pharmacy to the in-patient for use in the course of health care service provided by the hospital cannot be termed as composite supply. Moreover in the case where package is not applicable and the treatment, medicines, other supplies, and other items are charged to the patient, separately at actual, and also in case supply of medicines and other supplies are being charged separately according to the type, brand(when choice available to the patient), and quantity of items issued to the patients then it could not be classified as composite supply of healthcare service.
In respect to question no. (ii) Supply of medicines, consumables etc. to patients admitted in hospitals exempted under notification No.12/2017 read with Section 8(a) of GST'? - This authority rules that supply of medicines, consumables etc to the patients admitted in hospitals are exempted in Para 2 (zg) of Notification No. 12/2017-CT (Rate), dt. 28.6.2017, only when it fulfils the condition as explained in ruling of question no-(i) and the conditions given in the said notification.