GST Applicable on Fees collected from nurses for imparting Practical Training [Read AAR]

The Karnataka Authority of Advance Ruling (AAR Karnataka) in the matter of M/s SPANDANA PHARMA has ruled out that GST is Applicable on Fees collected from nurses for imparting Practical Training.

The applicant is a Proprietorship Concern, registered under the provision of the Central Goods and Services Tax Act, 2017, as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST / SGST Act respectively. The applicant is engaged in the activity of providing health care services. The applicant also runs a hospital in the name of Spandana Pharma.

The Question and Ruling are as follows:

The applicant has sought an advance ruling in respect of the following questions:

i. Whether the supply of medicines, drugs and consumables used in the course of providing health care services to in-patients during the course of diagnosis and treatment during the patient admission in the hospital would be considered as “Composite Supply” qualifying for exemption under the category of “health care services” as per Services Exempt Notification No. 12/2017-Central Tax (Rate) dated: 28-06-2017 read with Section 8(a) of the CGST Act, 2017 / KGST Act, 2017?

ii. Whether the supply of food to in-patients would be considered as a “Composite Supply” of health care services under CGST Act, 2017 and KGST Act, 2017 and consequently, can exemption under Services Exempt Notification No. 12/2017-Central Tax (Rate) dated: 28-06-2017 read with Section 8(a) of GST be claimed?

iii. Retention Money: Whether GST is applicable on money retained by the applicant?

iv. Whether GST is exempt on Fees collected from nurses and psychologists for imparting practical training?

RULING

i. The supply of medicines, drugs and consumables used in the course of providing health care services to in-patients during the course of diagnosis and treatment would be considered as a “Composite Supply” of health care services qualifying for exemption as per entry No. 74(a) of Notification No. 12/2017-Central Tax (Rate) dated: 28.06.2017 subjected to the condition mentioned therein.

ii. The supply of food to in-patients would be considered as a “Composite Supply” of health care services qualifying for exemption as per entry No. 74(a) of Notification No. 12/2017-Central Tax (Rate) dated: 28.06.2017 subjected to the condition mentioned therein.

iii. GST is not applicable on money retained by the applicant.

iv. GST is not exempted on the fees collected from nurses and psychologists for imparting practical training.

For Official Ruling Download PDF Given Below: