The Authority for Advanced Ruling (AAR), TamilNadu ruled that Goods and Services Tax (GST) is not applicable for the supply of inpatient health care services rendered by the hospital.
The applicant has a multi-speciality tertiary care hospital providing health care services to both outpatients and in-patients. The in-patients are provided with stay facilities, medicines, consumables, surgical and implants, dietary food and other surgeries/procedures required for the treatment. From the In-patient final bill and related bills furnished by the applicant, it is seen that in case of In-patients the final bill charged includes Hospital Services Room charges, Consultation charges], Pharmacy services Investigation charges, food and Beverages, OT charges, Pharmacy charges(lP and OT)].
From the Medication Order for In-Patients (Credit Payment) note enclosed with the final bill, it is evident that the medicines, consumables, etc are procured from IP pharmacy for administering the same to the in-patient. It is seen that inpatients are provided a comprehensive treatment which includes room rent, nursing care, medicines, consumables, implants etc. The doctors who treat the in patients themselves prescribe the medicines and consumables and implants are used in their treatment and diagnostics. The inpatients are charged for all of these when they are admitted to the hospital which provides services to the inpatients.
The ruling was made by Ms Manasa Gangotri Kata and Thiru Kurinji Selvaa V.S. on an application filed by M/s. CMC Vellore Association.
The AAR observed that from a joint reading of the ‘Explanation of service ‘pertaining to ‘Inpatient services’ and the exemption above, it is evident that the exemption is applicable to a “Clinical Establishment” when services by way of diagnosis or treatment or care for illness, etc. are undertaken by such establishment under the directions of a medical doctor. The applicant hospital is a Clinical Establishment and for the health care services, as defined in the Notification above provided including the supply of medicines, implants and consumables, they are exempted from CGST and SGST.
Subscribe Taxscan Premium to view the Judgment
