GST liability on medicines/consumables supplied to in‑patients as part of exempt health services

Last updated: 09 February 2026

Save Share

Quick Summary

The Delhi High Court has ruled on the GST liability concerning medicines and consumables supplied to hospital in-patients as part of exempt health services. While allowing adjudication proceedings to continue, the court has stipulated that any final order will not be enforced until the ongoing writ petition is resolved. This decision acknowledges the complexity of determining taxability when these items are bundled with core medical treatment.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of M/s. Escorts Heart Institute and Research Centre Limited v. Additional Commissioner, CGST Audit-1 & Ors. [] held that where a notice under Section 76 of the CGST Act alleges that GST collected on medicines, consumables and devices billed at MRP to in-patients has not been paid to the Government, and raises important questions on taxability of such supplies when bundled with exempt health services, adjudication proceedings may continue with full opportunity of hearing and examination of invoices and procurement/tax details; however, any final order shall not be given effect to during the pendency of the writ petition.

Citation :
W.P.(C) 19355/2025, order dated December 19, 2025

Daily Limit Reached