The applicant entered into an agreement with the Central...

The applicant entered into an agreement with the Central Hospital, South Eastern Railway to provide catering services by running the in-house kitchen, for which the hospital is liable to pay consideration. The issue pertains to whether the supply of food to inpatients by the applicant is exempt from GST as a composite supply of healthcare services or is taxable as a standalone supply of food. The authority held that the applicant is supplying services to the hospital, which provides healthcare services to patients. The supply of food by the applicant to the hospital is a standalone service and cannot be considered a composite supply of healthcare services. GST is payable on the service of supplying food, and no exemption is provided as the service is outsourced by the hospital, and the applicant is not a clinical establishment. The authority relied on the Telangana AAR ruling, which held that GST is payable on outsourced food supply services by hospitals.

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