Vaccines supplied, across Counter through Separate Chemist Shop owned by Hospital attracts GST: AAR [Read Order]

The Chhattisgarh Authority for Advance Ruling ( AAR ), held that Vaccines supplied, across counter through separate chemist shop owned by hospital attracts GST.

The applicant, Anju Parakh sought advance ruling on applicability of GST on vaccination done by doctors in their clinic (OPD).

The applicant is a practicing paediatrics registered and undertakes the work of vaccination to the children coming in their clinic. The applicant charges fees for the above vaccination work provided to the children. The applicant contended that they are eligible for exemption as regardthe facility of vaccination done by them in their clinic, claiming the same to be covered under health care services.

The Central government vide Notification no. 12/2017-CT(Rate) dated-28,.06.2017 has exempted the intrastate supply of services by way of health care services by a clinical establishment, an authorized medical practitioner or para-medics from the GST liability, vide serial no. 74 under heading 9993 of the above notification.

A Two-member Bench of the authority comprising Rajesh Kumar Singh (Member) and Sonal K. Mishra (Member) ruled that “Vaccines sold supplied through a separate chemist shop/ pharmacy store owned by the clinic/hospital across the counter would be subjected to GST as supply of goods, at the applicable note of GST.”

The Bench also noted that in the case where the clinic/ hospital itself has divided the contract into two parts one for supply of healthcare services and the other for supply sale of vaccines, then such supply/sale of Vaccines across the counter would be subject to GST, there being no single and composite contract for the said supply.

The Bench further pointed out that when the supply of vaccines is used in the course of providing health care services to the patients for treatment, the same being naturally bundled and being in conjunction with each other would be considered as "composite supply thereby becoming eligible for exemption as stipulated under St. no, 74 of Notification no 12/2017- Central Tax (Rate) dated 28.6.2017 under the category of health care services the pre-dominant factor being rendering of healthcare services.

To Read the full text of the Order CLICK HERE

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