In-Patient Healthcare Services Including Medicines and Room Charges Treated as Composite Supply: AAR:

In-Patient Healthcare Services Including Medicines and Room Charges Treated as Composite Supply: AAR The applicant, Laxmi Health Care Centre & ICCU, operates a nursing home that offers healthcare services. The invoice raised for the treatment of an in-patients includes several charges, such as room rent, nursing care charges, laboratory, consumables, medicines, equipment charges, doctor's fees, and more.

Also Read

AAAR Rejects Company’s GST Appeal Over 250-Day Delay Without Examining Merits

The company filed an application under section 97 of the CGST Act and MGST Act before the Maharashtra Authority for Advance Ruling (AAR), asking the following questions: "1. Whether charges recovered towards pathological test, radiological test and other medical test, bed charges and charges for medicines & other consumables during course rendering medical treatment to in-patients is single supply of healthcare service? 2. Whether applicant is eligible for exemption under entry 74 of notification 12/2017-CT (Rate) dated 28th June, 2017 for above charges recovered from in patients under 1 common contract/invoice?"

Also Read

Andhra Pradesh AAR Clarifies 18% GST Rate On Spent Earth under HSN Code 3802 9019

As per the Maharashtra AAR, the supply of medicines, lab tests, bed charges, food, etc. to in-patients constitutes a composite supply where healthcare service is the principal supply as per Sl. No. 74 of Notification No. 12/2017 CT(R) read with Section 8(a) of the CGST Act. Further, the principal supply, i.e., healthcare services, is exempted from GST. However, the assessee must pay the tax on the room rent charges (except for the ICU/CCU) if it exceeds Rs 5,000.