Administering of COVID-19 vaccine by hospitals is a composite supply and liable for GST at 5%

Last updated: 23 January 2023

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The Andhra Pradesh Appellate Authority for Advance Ruling has determined that the administration of COVID-19 vaccines by hospitals constitutes a composite supply, not an exempt healthcare service. The principal supply is the sale of the vaccine, with the administration being an ancillary service. Consequently, this composite supply is subject to a 5% Goods and Services Tax (GST).

Court :
AAAR, Andhra Pradesh

Brief :
The AAAR, Andhra Pradesh in the matter of M/s Krishna Institute of Medical Sciences Limited [Order No. AAAR/AP/07(GST)/2022 dated December 19, 2022] upheld the order of the AAR wherein it was held that the administration of COVID - 19 vaccine is not an exempted supply as it is not covered under the definition of 'healthcare services'. Further held that, it is a composite supply wherein the principal supply is the 'sale of vaccine' and the ancillary supply is the service of 'administering of vaccine' and liable to Goods and Services Tax ("GST") at 5%.

Citation :
Order No. AAAR/AP/07(GST)/2022 dated December 19, 2022

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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