GST exemption for healthcare: composite supply treats inpatient medicines and implants as nil rated, outpatient pharmacy sales remain taxable.
Health care services are exempt from GST and, when health care is the principal element, ancillary items such as medicines, implants and in patient food form a composite supply taxed at the rate of the principal supply (nil). Services by visiting consultants and retention fees collected by hospitals are treated as part of the exempt service. Pharmacy sales to out patients and other non inpatient supplies, plus ancillary revenue streams like rentals and canteen leases, remain taxable and outside the exemption. (AI Summary)