https://www.taxtmi.com/caselaws?id=776141 The HC upheld the validity of clause (g) of section 2(23) of the Gujarat VAT Act, ruling that the supply of medicines, stents, implants, and consumables to indoor patients constitutes a "works contract" and is subject to tax. Relying on the Apex Court's decisions post-46th Constitutional Amendment, the court held that such composite contracts involving goods and services amount to a "deemed sale" of goods. The hospital's supply of medical goods integrated with treatment forms a single economic transaction, justifying taxation. The petition challenging the tax demand was dismissed, affirming that the State Legislature acted within its competence and that the supply of goods during medical treatment falls within the ambit of taxable works contracts. en-us Fri, 25 Jul 2025 00:00:00 +0530 Wed, 06 Aug 2025 08:19:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776141 The HC upheld the validity of clause (g) of section 2(23) of the Gujarat VAT Act, ruling that the supply of medicines, stents, implants, and consumables to indoor patients constitutes a "works contract" and is subject to tax. Relying on the Apex Court's decisions post-46th Constitutional Amendment, the court held that such composite contracts involving goods and services amount to a "deemed sale" of goods. The hospital's supply of medical goods integrated with treatment forms a single economic transaction, justifying taxation. The petition challenging the tax demand was dismissed, affirming that the State Legislature acted within its competence and that the supply of goods during medical treatment falls within the ambit of taxable works contracts. Case-Laws VAT / Sales Tax Fri, 25 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776141