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ADVANCE RULING RELATED TO HOSPITAL

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FactsErnakulam Medical Centre (P.) Ltd. (“the Appellant’)  is engaged in rendering medical services with professionals like doctors, nursing staff, lab technicians, etc. Vide Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 health care services classified under SAC 9993 provided by a clinical establishment, an authorized medical practitioner or para-medics were exemptedMedicines supplied through pharmacy to both inpatients and outpatients under the prescripttion of the doctors are incidental to the health care services rendered in the hospital and beyond the ambit of taxation.

Issue Involved: Whether the supply of medicines and allied items through the pharmacy of the hospital run by the applicant attracts liability under GST?

The appellant has stated that the ruling by the Advance ruling Authority “(i)The supply of medicines and allied items provided by the hospital through the pharmacy to the in-patients is part of composite supply of health care treatment and hence not separately taxable. (ii)The supply of medicines and allied items provided by the hospital through the pharmacy to the out-patients is taxable” is opposed to law, facts, circumstances and the legislative intent behind the exemption granted vide Notification No.12/2017-CT(Rate) dated 28.06.2017 (Sl. No. 74).

FactsErnakulam Medical Centre (P.) Ltd. (“the Appellant’)  is engaged in rendering medical services with professionals like doctors, nursing staff, lab technicians, etc. Vide Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 health care services classified under SAC 9993 provided by a clinical establishment, an authorized medical practitioner or para-medics were exemptedMedicines supplied through pharmacy to both inpatients and outpatients under the prescripttion of the doctors are incidental to the health care services rendered in the hospital and beyond the ambit of taxation.

Issue Involved: Whether the supply of medicines and allied items through the pharmacy of the hospital run by the applicant attracts liability under GST?

The appellant has stated that the ruling by the Advance ruling Authority “(i)The supply of medicines and allied items provided by the hospital through the pharmacy to the in-patients is part of composite supply of health care treatment and hence not separately taxable. (ii)The supply of medicines and allied items provided by the hospital through the pharmacy to the out-patients is taxable” is opposed to law, facts, circumstances and the legislative intent behind the exemption granted vide Notification No.12/2017-CT(Rate) dated 28.06.2017 (Sl. No. 74)

Sir my doubt This rule applies to all hospitals, whether they are exclusive to that hospital (Ernakulam Medical Centre (P.) Ltd.)or not

Replies (1)
Yes Advance ruling is applicable to that Particular State.

But you can also refer circular no.32/06/2018 GST , DTD.12.02.2018, supply to In-patient cover under healthcare treatment & to Out- Patient is Taxable .


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