Are medicines, surgical items, plants, stents and other consumables considered as a Composite Supply?

Last updated: 18 August 2021

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This ruling clarifies whether medicines, surgical items, plants, stents, and similar consumables constitute a composite supply under GST. The Authority for Advance Ruling examined the nature of these items when supplied together to determine their tax treatment. The decision provides guidance on classifying such combined supplies for GST purposes.

Court :
KERALA AUTHORITY FOR ADVANCE RULING GOODS AND SERVICES TAX DEPARTMENT

Brief :
Composite supply where the principal supply is health care service which is exempted. The eligibility of credit of tax paid on the inputs and input services used for taxable as well as exempted supplies are governed by the provisions of section 17 (2) of the CGST act.

Citation :
KER/108/2021

KERALA AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES DEPARTMENT TAX, TAX TOWER,

OF :Shri. KARAMANA, THIRUVANANTHAPURAM — 695002

BEFORE THE AUTHORITY Sivaprasad S, IRS& : Shri. Senil A K Rajan

Please find attached the enclosed file for the full judgement

FAQ :

A composite supply occurs when two or more supplies are naturally bundled and provided together, with one being the principal supply. For example, a hotel stay with food is typically a composite supply where the hotel stay is the principal supply.

The ruling examines whether medicines, when supplied with other items like surgical consumables or plants, form a composite supply. The classification depends on whether these items are naturally bundled and if one is the principal supply.

Surgical items and stents are assessed to see if they are supplied in a way that constitutes a composite supply, meaning they are bundled with other goods or services where one is the primary offering.

Yes, the ruling considers the scenario where plants might be supplied alongside other consumables, determining if this combination qualifies as a composite supply under GST regulations.

Attached File : 1442821_4222_108_st_thomas_hospital.pdf

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Judgement posted by

Poojitha Raam Vinay

Practice

I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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