The Gujarat Authority of Advance Ruling (AAR) ruled that the medicines, consumables, and implants used as health care for diagnosis or treatment of patients are a “Composite Supply”.
The applicant, M/s. Shalby Limited, established by Dr. Vikram I. Shah in 1994 in Ahmedabad, Gujarat, operates a chain of multispecialty hospitals across India, holding an aggregate bed capacity of over 2000 hospital beds. Shalby’s recognition as a multispecialty tertiary hospital chain in the Indian healthcare industry was envisioned by its founder Dr. Vikram Shah – CMD, who has been felicitated by Ethicon India for the development of the ‘OS Needle’.
The applicant submitted that they strive to provide quality healthcare to people across the globe by inventing, adapting, and imbibing the world’s best technologies and innovations. ‘Catering total health care under one roof at most affordable costs’ has been their motto, which has helped them establish a chain of multispecialty hospitals and vibrant OPD centers across India and the world.
The applicant has sought the advanced ruling on the issue whether the medicines, consumables and implants used in the course of providing health care services to in-patients for diagnosis or treatment for patients opting with or without packages along with allied services i.e. (room rent/food/doctor fees Etc.) provided by hospital would be considered as “Composite Supply and accordingly eligible for exemption under the category “Health Care Services”.
The Coarm of Sanjay Saxena and Mohit Aggarwal ruled that the medicines, consumables, and implants used in the course of providing health care services to in-patients for diagnosis or treatment for patient opting with or without packages along with allied services i.e. (room rent/food/doctor fees Etc.) provided by the hospital is a “Composite Supply”. Supply of inpatient health care services by the applicant hospital as defined in Para 2(zg) of the Notification No.12/2017-Central Tax (Rate) dated June 28, 2017, as amended, is exempted from CGST as per Sl. No. 74 of the above notification.
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