Supply of medicine, food etc. in hospital is composite supply

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Supply of medicine, food etc. in hospital is composite supply

The Authority for Advance Ruling (AAR), Kerala has held that the supply of medicines and allied items like food as advised by doctor/nutritionist provided by hospital through pharmacy to in-patients shall be treated as composite supply of health care treatment under the GST regime and, therefore, cannot be taxed separately.
 The authority has clarified that the supply of medicines and allied items provided by hospital through pharmacy to out-patients is taxable.
*M/s. Eranakulam Medical Centre P. Ltd. – Advance Ruling No. / KER / 16 / 2018 Dated 29-09-2018*

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