No GST Exemption to Pharmacy run by hospital dispensing medicine to out-patients: AAR

Pharmacy run by hospital dispensing medicine to out-patients can be treated as an individual supply of medicines; Exemption in terms of entry at S. No. 74 of Notification No. 12/2017-CT (Rate) is not available on supply of medicines and allied goods – AAR Tamilnadu

Questions on which Advance Ruling is sought:

1. Whether the Supply of medicines and consumables used in the course of providing health care services to In-patients by pharmacy unit of Be well hospitals for diagnosis or treatment during the patient’s admission in the hospital would be considered as *Composite Supply of health care service as under GST and consequently avail exemption under Notification No.12/2017 CT (Rate) read with Section 8(a) of GST?

2. Whether the supply of medicines and consumables used in the course of providing health care services to out-patients by pharmacy unit of the Be well hospitals for diagnosis or treatment would be considered as “Composite Supply” of health care services under GST and consequently avail exemption under Notification 12/2017 CT(rate) read with Section 8(a) of GST?

Advance Ruling:

1. Supply of Medicines and consumables used in the course of providing health care services to in-patients admitted to the hospital for diagnosis, or medical treatment or procedures till discharge is a composite supply of In Patient Healthcare Service, provided the consolidated bill raised in the name of the patient indicates the supply of medicines and consumables during the course of the provision of health care services, as defined in Para 2(zg) of Notification no 12/2017-C.T. (rate) dated 28.06.2017 as amended and Notification No.II (2)/CTR/532(d-15)/2017 vide G.O. (Ms) No. 73 dated 29.06.2017 as amended and the same is exempted from CGST and SGST as per Sl No 74 of the above notifications respectively.

2. Supply of Medicines and consumables used in the course of providing health care services to Out-patients admitted to the hospital for diagnosis, or medical treatment or procedures is not a composite supply and is hence taxable to GST.

To Read Advance Ruling Download PDF Given Below: