https://www.taxtmi.com/caselaws?id=371705 The AAR Karnataka ruled that healthcare services with bundled medicines and food constitute composite supplies where the principal exempt healthcare service determines the tax treatment. Medicines supplied to inpatients form part of exempt composite supplies when prescribed by doctors. However, medicines sold to outpatients who can purchase elsewhere are separate taxable supplies. Food supplied without medical advice is also treated as separate supply. The applicant can claim input tax credit only on supplies attributable to taxable services, not exempt healthcare services, with reversals required under section 17 CGST Act and Rule 42. en-us Tue, 13 Nov 2018 00:00:00 +0530 Wed, 11 Jun 2025 12:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=371705 The AAR Karnataka ruled that healthcare services with bundled medicines and food constitute composite supplies where the principal exempt healthcare service determines the tax treatment. Medicines supplied to inpatients form part of exempt composite supplies when prescribed by doctors. However, medicines sold to outpatients who can purchase elsewhere are separate taxable supplies. Food supplied without medical advice is also treated as separate supply. The applicant can claim input tax credit only on supplies attributable to taxable services, not exempt healthcare services, with reversals required under section 17 CGST Act and Rule 42. Case-Laws GST Tue, 13 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=371705