TaxTMI 
TaxTMI 
2026 (3) TMI 1293
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....he applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s DR. KAMAKSHI MEMORIAL HOSPITAL PVT. LTD., No. 1, Radial Road, Pallikaranai, Chennai - 601 302 (hereinafter called as the "Applicant") are registered under GST with GSTIN:33AACCD1521C1ZK. The Applicant is a 400 bedded multi speciality hospital based in Pallikarani with branches in Adyar, Medavakkam and Siruseri providing health care services to patients at one roof. Established as a recognized Clinical Establishment in the State of Tamil Nadu and accredited by NABH, the hospital is committed in delivering exceptional healthcare with compassion. They are providing health care services cove....
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....the supply of medicines and consumables is naturally bundled with the core healthcare service provided to the in-patient and is rendered in the ordinary course of business. The patient receives a single package of healthcare services that includes diagnosis, treatment, and the administration of necessary medication. The applicant hospital contends that such a supply qualifies as a "Composite Supply" as defined under section 2(30) read with Section 8(a) of the CGST Act, 2017. The principal supply in this case is healthcare service, while the supply of medicines and consumables is ancillary and dependent on the treatment being rendered. 3.6 Accordingly, the entire bundle of services - including the administration of medicines and consumables - should be eligible for exemption under Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017, which grants exemption to healthcare services provided by a clinical establishment. 4. Interpretation of Law by the Applicant 4.1 The applicant has stated that the supply of medicines and consumables is naturally bundled with the core healthcare service provided to the in-patient and is rendered in the ordinary course of business. The ....
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....ons and Findings: 7.1 We have carefully considered the submissions made by the applicant in the advance ruling application, the submissions made during the personal hearing held on 20.01.2026 and the additional submissions furnished during the personal hearing by the applicant. 7.2 The question on which an advance ruling is requested is as given below:- "Whether supply of medicines and consumables used in the course of providing health care services to In-patients by pharmacy a unit of Dr. Kamakshi Memorial Hospital Put. Ltd., for Diagnosis or treatment during the patients' admission in hospital would be considered "Composite Supply of Healthcare Service" under GST and consequently avail exemption under Notification No. 12/2017, CT (Rate) read with section 8(a) of the GST Act?" As the above question relate to applicability of a notification and determination of liability to pay tax on any goods or services or both, they fall within the purview of Section 97(2) of the CGST Act, 2017 and are liable for admission. 7.3 The Applicant states that theirs is a 400 bedded multi speciality hospital based in Pallikarani with branches in Adyar, Medavakkam and Siruseri prov....
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....relevant extract under the Group - 99931 (Human health Services) of heading 9993, as affixed below, that apart from other healthcare services, Inpatient Services' gets specifically covered under the service code 999311. S.No Heading or Group Service Code (Tariff) Service Description 603 Heading 9993 Human health and social care services 604 Group 99931 Human health services 605 999311 Inpatient services 606 999312 Medical and dental services 607 999313 Childbirth and related services 608 999314 Nursing and physiotherapeutic services 609 999315 Ambulance services 610 999316 Medical laboratory and diagnostic-imaging services 611 999317 Blood, sperm and organ bank services 612 999319 Other human health services including homeopathy, unani, ayurveda, naturopathy, acupuncture and the like. 7.6 Further, under the Explanatory Notes to the Scheme of Classification of Services', the services rendered to in-patients under the service code '999311' includes: i) Surgical services del....
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....composite supply of health care services. In this regard, when the members enquired during the personal hearing held on 20.01.2026, as to whether the pharmacy is forming part of the hospital, the AR explained that the pharmacy bears the same GSTN as that of the hospital and is very much a part of the hospital. They further added that they have a separate pharmacy/counter for in-patients and out-patients. 7.8 We further note that clause (a) to Section 8 of the CGST Act, 2017, which prescribes the manner in which the tax liability is to be determined on a 'composite supply', runs as below:- "(a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply;" Accordingly, the tax liability in respect of a 'composite supply', as in the instant case, is liable to the determined based on the taxability of the 'principal supply', i.e., 'health care services', which is exempted from payment of GST. 7.9 This apart, we observe that the Circular No. 32/06/2018-GST, dated 12.02.2018, deals with the issue in question, and the relevant extract of the clarification provided therein reads as below:- ....