Supply of medicines used in the course of providing health care services is exempt from GST : AAR

Supply of medicines used in the course of providing health care services is exempt from GST : AAR | Kerela Authority of Advance Ruling in matter of KIMS Health Care Management Ltd.

Supply of medicines used in the course of providing health care services is exempt from GST : AAR

Government of India vice Circular No.27/01/2018-GST Dt. 04-01-2018 has clarified that room rent in hospital is exempted. As for as inpatients are concerned, room facility in a hospital is one limb of bundled service of health care. The clarifications issued based on the approval of 25th GST Council Meeting held on 18-01-2018 [F.No.354/17/2018-TRU] Dt.12-02-2018, it was clarified that food supplied to the inpatients as advised by the doctor/nutritionist is a part of composite supply of health care and not separately taxable. Other supplies of food by hospital to patients not admitted are taxable. The same principle is applicable in the case of dispensing of medicine also. In view of the observations stated above, the following rulings are issued: The supply of medicines, consumables and implants used in the course of providing health care services to in-patients for diagnosis or treatment are naturally bundled and are provided in conj unction with each other, would be considered as "Composite Supply" and eligible for exemption under the category 'health care services'. Click here to download the Advance Ruling