2018 (11) TMI 281

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.... those who are admitted in to the hospital for the required treatment. The in-patients are provided with stay facilities, medicines, consumables, implants, dietary food and other surgeries/ procedures required for the treatment. There is a Central Pharmacy from where the procured stocks of medicines, implants, consumables etc are supplied to its outlets such as in-patient pharmacy, operation theater pharmacy and out-patient pharmacy. The in-patient pharmacy and operation theater pharmacy supplied medicines and consumables only to in-patients. Whereas the 'out-patient pharmacy' attached to the hospital entertain the medical prescription of out-patients and outside customers with valid prescription. The medicines, consumables and implants u....

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....being health care services. There are several decisions pertaining to the point that the supply of medicines, surgical items, etc to the patients in the course of treatment by hospital cannot be said to be sale. The issue is examined in detail. Health care services provided by a clinical establishment, an authorized medical practitioner or para medics are exempted vide Sl.No.74 of Notification No.12/2017-CT (Rate) Dt.28.06.2017. The word 'clinical establishment' means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnostics or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in Indi....

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....e best possible treatment. Hence the medicine and allied goods supplied to inpatient are indispensable items of the treatment and it is a composite supply to facilitate health care services. This authority has already given a Ruling in this regard vide order No.KER/16/2018 Dt.26.09.2018 = 2018 (10) TMI 511 - AUTHORITY FOR ADVANCE RULINGS, KERALA to the effect that the supply of medicines and allied items provided by the hospital through the pharmacy to the in-patients is part of composite supply of health care treatment and not separately taxable. Pharmacy is an outlet to dispense medicines or allied items based on prescription. The in-patient pharmacy and operation theater pharmacy supplied medicines and consumables only to in-patients. W....