Hospital MRP Billing for Inpatients Cannot Automatically Become GST Collection

Raj Jaggi | Last updated: 20 July 2026

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A recent Calcutta High Court case highlights a significant GST controversy regarding how inpatient hospital treatment is billed. The dispute centres on whether medicines, consumables, and implants listed separately on a hospital bill, even when priced at MRP, should be subject to GST as independent taxable supplies. The court is examining the concept of composite supply, where healthcare is considered the principal exempt service, meaning incidental items should follow its tax treatment.

The Real Question Behind a Hospital Bill The Calcutta High Court order in M/s Narayana Hrudayalaya Limited v. The Joint Commissioner of State Tax, Large Taxpayer Unit and Others, 2026-VIL-709-CAL, WPA 11903 of 2026, dated 14.07.2026, brings a significant GST controversy in the healthcare sector

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About the Author

Raj Jaggi

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CA. Raj Jaggi is a Chartered Accountant based in New Delhi, primarily practising in the field of Goods and Services Tax (GST) consultancy, litigation support, and advisory services. After being associated with the leading indirect tax firm A.K. Batra and Associates for nearly 19 years, from June 2007 to March 2026, he ... Read more

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