2026-VIL-29-AAR
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SGST Advance Ruling Authority

GST – Tamil Nadu AAR – Healthcare Service, Composite supply, Exemption of supplies of medicines, consumables, implants, and medical items to inpatients and outpatients as part of healthcare services - Whether the supply of medicines, consumables, implants, and medical items to inpatients as part of the treatment provided by the hospital is exempt under Entry No. 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as a composite supply of healthcare services - HELD - The complete gamut of activities required for the well-being of a patient from admission till discharge, provided by a hospital under the direction of medical doctors is a composite supply of service and is covered under ‘Inpatient services’ classifiable under SAC 999311 - The services provided to inpatients, including medical, pharmaceutical, and paramedical services, rehabilitation services, nursing services, and laboratory and technical services, until the patient is discharged, constitute a composite supply of healthcare services. The clarification provided in Circular No. 32/06/2018-GST, dated 12.02.2018, states that the entire amount charged by hospitals from patients, including the fee/payments made to the doctors, etc., is towards the healthcare services provided by the hospitals to the patients are exempt from GST - The applicant-hospital is a ‘Clinical Establishment and the supply of medicines, consumables, implants, and other medical items to inpatients as part of the treatment provided by the hospital is exempt under Entry No. 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as a composite supply of healthcare services – Ordered accordingly - Whether the supply of medicines, consumables, implants, and medical items to outpatients as part of the treatment provided by the hospital is exempt under Entry No. 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as a composite supply of healthcare services - HELD - While providing healthcare-related services to outpatients, the medicines and consumables prescribed by the doctor are of an advisory nature, the outpatients are not mandated to procure them only from the hospital's pharmacy. Therefore, except for the exempted healthcare service, all other supplies, including medicines, implants, consumables, etc., in the case of supplies to outpatients, are taxable to GST - The consultation service provided to outpatients is exempt under Entry No. 74 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. However, the supply of medicines, consumables, implants, and medical items to outpatients attracts payment of GST.
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