GST not leviable on supply of medicines and food to in-patients in the course of providing healthcare services

Last updated: 23 February 2024

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Quick Summary

The Karnataka AAR has ruled that Goods and Services Tax (GST) is not applicable on medicines and food supplied to in-patients as part of healthcare services. These supplies are considered ancillary to the primary healthcare service, which is exempt under the GST law. The ruling clarifies that such bundled services, where healthcare is the principal supply, are eligible for the exemption.

Court :
Karnataka AAR

Brief :
The Karnataka AAR in the case of In Re. M/s. Spandana Rehabilitation Research and Training Centre Private Limited [KAR ADRG 06/2024 dated January 29, 2024] held that GST is not leviable on supply of medicines and food to in-patients in the course of providing health care services as the aforesaid ancillary services would fall within the purview of composite supply of healthcare service which is exempt as per Entry bearing Sl. No. 74(a) of Notification No. 12/2017- Central Tax-(Rate) dated June 28, 2017 ("the Exemption Notification").

Citation :
KAR ADRG 06/2024 dated January 29, 2024

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

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3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

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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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