TaxTMI 
TaxTMI 
2018 (9) TMI 2102
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....esiding in Jamshedpur for sustainability and better health treatment. The hospital is primarily engaged in providing Health Care Services through its Outdoor Patient Department (OPD) and Indoor Patient Department (IPD). A detailed list of services provided by the hospital is given Annexure-A. To facilitate the purpose of providing Health Care Services, the hospital is purchasing necessary Machine & Equipment for various Tests and Scans, Ambulance for transportation of patients, and machines for supply during the course of Treatment of patients. 3. The services provided by the Hospital are of the following categories of people:- a) Employee of TML and their dependents. b) Non-Employees (Employee of other Associated Business Entities) and their dependents. c) Non-Employees resident (Cash Patients). 4. There is no consideration for services provided to people in category (a) mentioned above, being part of employment contract. Whereas, the consideration of services provided to people in category (b) is collected from their respective Associated Business Entities at the end of every month and the consideration from people in category (c) is collected in for....
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.... No consideration. However, Billed to Individual, if the Dead Body is brought from outside. c) No consideration. However, Billed to Individual, if the Dead Body is brought from outside. 9 Funeral Truck (Hearse) a) Employee of TML b) Non-Employees (Employee of other Associated Business Entities) c) Non-Employees (Cash Patients) a) No consideration b) Billed to Individual c) Billed to Individual 5. The applicant sought Advance Ruling on the following questions/issues:- (i) Whether Doctor's Consultancy as mentioned in SI No. 1 of Annexure-A to the various categories of people specified in SI No. 1 is taxable under GST or not? (ii) Whether Tests and Scans as mentioned in SI No.2 of Annexure-A to the various categories of people specified in SI No.2 for IPD and /or OPD cases is taxable under GST or not? (iii) Whether Admission charges, Bed Charges, Operation Charges, Sundry Charges, etc as mentioned in SI No.3 of Annexure-A to the various categories of people specified in SI No.3 is taxable under GST or not? (iv) Whether Medicine Dispensation to In-Patients as mentioned in SI No.4 of Annexure-A to the various categori....
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.... is as per terms of employment contract and part of CTC. 8.2 As this is a part of facility for employee in terms of contract of employment, it cannot be treated as service provided by employer to employee and hence not subject to GST. This view is also supported by Press release issued by CBEC on 10.07.2017. 8.3 Accordingly all the facilities provided by the hospital to the employees and their dependents (All Question of Annexure-'B with regard to Employees) should not attract GST. 8.3a Supply of Drugs and Medicines is a Taxable Supply under the GST Act and the rates are accordingly prescribed under Chapter 30 and Heading 9804 of the GST Tariff. 8.3b Human Health Care and Social service is also a Taxable Supply under the GST Act and the rates are accordingly prescribed under the Heading 9993 of the GST Tariff. 8.3c However, by virtue of SI No. 74 of Notification NO. 12/2017-Central Tax (Rates), dated 28.06.2017 "Health Care Services" are exempted from levy of GST. 8.4 The definition of the term "Health Care Services" and "Clinical Establishment" as given in the said notification is reproduced below: As per clause 2(zg) of the notification "Health Care....
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.... 5. Medicine Dispensation to Other Patients after the consultancy from Doctor's is also in the course of treatment or care for illness, injury, etc. Hence it is covered by the definition of Health Care Services and accordingly not chargeable to GST. 6. Preventive Health Check-up is a preliminary investigation process for diagnosis of illness. Hence it is covered by the definition of Health Care Services and accordingly not chargeable to GST. 8.6 As per Section 2(30) of the Central Goods and Services Tax (CGST) Act, 2017, the term "composite supply" means 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. 8.7 As per Section 2(107) of the Central Goods and Services Tax (CGST) Act, 2017, the term "taxable person" means a person who is registered or liable to be registered under section 22 or section 24. 8.9 As per Section 2(47) of the Central Goods and Services Tax (CGST) Act, 2017, the term "exempt supply" means supply of a....
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.... Advance Ruling on the six questions i.e.- 1. Whether Doctor's Consultancy as mentioned in SI No. 1 of Annexure-A to the various categories of people specified in SI No.l is taxable under GST or not? 2. Whether Tests and Scans as mentioned in SI No.2 of Annexure-A to the various categories of people specified in SI No.2 for IPD and /or OPD cases is taxable under GST or not? 3. Whether Admission charges, Bed Charges, Operation Charges, Sundry Charges, etc as mentioned in SI No.3 of Annexure-A to the various categories of people specified in SI No.3 is taxable under GST or not? 4. Whether Medicine Dispensation to In-Patients as mentioned in SI No.4 of Annexure-A to the various categories of people sepcified in SI. No.4 for IPD cases is taxable under GST or not? In case medicine are subject to GST, whether GST needs to be paid on supplies to Non-Employees for consideration only (with ITC on inward supplies) or GST needs to be paid on supplies made to employees without consideration as well? 5. Whether Medicine Dispensation to other patients as mentioned in SI No. 5 of Annexure-A to the various categories of people specified in SI No.5 f....
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....s ,it is observed that the Applicant run hospital is as per terms of employment contract and part of CTC.As this is a part of facility for employee in terms of contract of employment, it cannot be treated as service provided by employer to employee and hence may not subject to GST. This view is also supported by Press release issued by CBEC on 10.07.2017. 10.6a Supply of Drugs and Medicines is a Taxable Supply under the GST Act and the rates are accordingly prescribed under Chapter 30 and Heading 9804 of the GST Tariff. 10.6b Human Health Care and Social service is also a Taxable Supply under the GST Act and the rates are accordingly prescribed under the Heading 9993 of the GST Tariff. 10.6c But vide SI No. 74 of Notification NO. 12/2017-Central Tax (Rates), dated 28.06.2017 "Health Care Services" are exempted from levy of GST. 10.7 Pertaining to the services provided by the Applicant to Non-Employees, it is observed that- 10.7aDoctor's Consultancy services provided in the hospital is an activity for diagnosis or treatment or care for illness, injury, etc. Hence, it is covered by the definition of Health Care Services and accordingly not chargeable to GST. 10.....