AI Drafter 
TaxTMI 
TaxTMI 
2022 (7) TMI 1099
X X X X Extracts X X X X
X X X X Extracts X X X X
....a Institute of Medical Science Limited (hereinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief Facts of the case: The applicant, M/s Krishna Institute of Medical Sciences Limited is a public limited Company, and a multi-speciality hospital, rendering healthcare services and claiming exemption on the said service vide notification no. 12/2017 Central Tax Rate. Apart from healthcare services, the Company also makes pharmacy supplies based on doctors prescriptions to outpatients, which is taxable and accordingly the Company remits taxes on the same. The Company has been permitted to administer COVID-19 vaccine. The process of administering COVID-19 vaccination has been narrated below: 3.1 Administration of vaccination: Vaccine administration is critical to ensure that vaccination is safe and effective. CDC (Centres for Disease Control and Prevention) recommends that all health care personnel who administer vaccines receive comprehensive, competency-based training on vaccine administration policies and procedures before administering vaccines. Comprehensive skills-based training should be integrated into existing staff educat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f GST on administration of Covid vaccines by Hospital administration. The applicant had filed an application in form GST ARA-01 dated 26.06.2021 by paying required amount of fee for seeking Advance Ruling on the following issues, as mentioned below: 4. Questions raised before the authority: The applicant seeks advance ruling on the following: 1. Whether administering of COVID-19 vaccination by hospitals is Supply of Good or Supply of Service? 2. Whether administering of COVID-19 Vaccine by clinical establishments (Hospitals) qualify as "Health care services" as per Notification No. 12/2017 Central Tax Rate dated 28.06.2017? 3. Whether administering of COVID-19 vaccination by clinical establishment is exempt under GST Act? On Verification of basic information of the applicant, it is observed that the applicant is under State jurisdiction, i.e. Assistant Commissioner (ST) Ongole-1 Circle, Nellore Division. Accordingly, the application has been forwarded to the jurisdictional officer and a copy marked to the Central Tax authorities to offer their remarks as per Sec. 98(1) of CGST /APGST Act 2017. In response, no remarks are received from the juri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;" 6. Further the definition of "authorized medical practitioner" stated in Notification No. 12/2017 Central Tax Rate dated 28th June 2017, is defined as "a medical practitioner registered with any of the councils of the recognised system of medicines established or recognised by law in India and includes a medical professional having the reguisite qualification to practice in any recognised system of medicines in India as per any law for the time being in force" B. Analysis of the provisions of the Act: Whether the supply of vaccination by hospitals is goods or service? If it is to categorize vaccination as sale of goods, we need to understand that vaccination is not supplied as a tangible product to the persons who intends to get vaccinated as a preventive measure. The vaccine vial consists of multiple doses which can be vaccinated to many persons and for such measurement, vaccination need to be carried by a technically competent person. The vaccination which is served to the person is one of the key medic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ey parameters of the composite supply, it is evident that the various components of supplies during the vaccination process are interdependent to each other and the supply cannot be performed without the other components and it is evident that each supply does not have its significance unless it is combined which is the feature of naturally bundled. The only objective of the person who is desired to get vaccinated is to build the immunity against the chronic virus and get himself protected from harmful virus. The person is vulnerable to COVID-19 virus without vaccination. The vaccination process cannot be self-administrated without support of medical practitioner and the same is not available for purchase and get it processed by a different medical practitioner, i.e., the vaccination can be taken at a designated healthcare establishment considering complexity involved in the process and existing regulations. In the process of vaccination high level care and responsibility has been assigned to the medical professionals by regulatory authority with the sole objective to prevent the public from illness i.e., COVID-19 virus. Once, it has been considered as service, whether the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f service'. When it comes to administering of the vaccine by hospitals, it involves a combination of two supplies, which are naturally bundled, i.e, 'supply of vaccine' and the 'service component' followed by way of administering the same. It is moreover, in the nature of Composite Supply, which is defined in the Act as under, "Composite supply: a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;" In the present case, both the supplies are intrinsically connected with each other, and it is viewed as a single package by the recipient, where he purchases the vaccine and gets it administered subsequently. In order to determine, which of the above two, is the principal supply, it would rather depend upon the normal or frequent practices followed in the area of business or the perception of the consumer / recipient as well. Generally, the primary requirement of the recipient would be the receipt of the vaccine, basing on hi....