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gst on medicine used for admitted patients in hospital

23 September 2017

i heard from a sales tax officer that get is not applicable for medicines used for admitted patients.. it comes under the definition of clinical establishments.... only sale to op patients are taxable... please clarify
..

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8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 September 2017

Yes, but the medicines bill should not be separate.

The whole billing should be as medical treatment charges, by hospital/clinic.

2 Like

Prasad K P (16 Points)
Replied 23 September 2017

you mean as consumable

Prasad K P (16 Points)
Replied 23 September 2017

can I raise medina bills as a seperate series and show it as medicine credit bills

Prasad K P (16 Points)
Replied 23 September 2017

can I raise medina bills as a seperate series and show it as medicine credit bills

Prasad K P (16 Points)
Replied 23 September 2017

or is it necessary to be a part of package

RAMESH KUMAR SINGLA (PROFESSIONAL) (1777 Points)
Replied 23 September 2017

Pl understand that when medicines are supplied during the course of admissioin in the hospital, this becomes composite supply and the principle supply is health service (HSN 9993) and not supply of medicines. Therefore, GST is not levied on medicines when supplied by the hospitals but is charged on supply of health services which of course will include the cost of medicines also.