GST liability on medicines/consumables supplied to in‑patients as part of exempt health services
Last updated: 09 February 2026
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
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Bimal Jain
Published in GST
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