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2020 ] COMPOSITE SUPPLY AND MIXED SUPPLY J35
liquor for human consumption), where such supply or service
is for cash, deferred payment or other valuable consideration.
In view of the above provisions such composite supply shall be treated as service.
However it is also pertinent to note that where there is sale of packaged
food from restaurant where there is no involvement of service shall not be treat-
ed as composite supply for treating the same as service.
Appellate Authority for Advance Ruling observed in case of Kundan
Mishthan Bhandar that the appellant was running sweetshop along with restau-
rant in two distinctly marked separate parts of same premises. They are also un-
dertaking separate billing and maintaining separate records for sweetshop and
restaurant. Sweets, namkeens, cold drinks and other edible items are supplied to
customers when supplied at sweetshop counter have no direct or indirect nexus
with restaurant service. These are not composite supply but individual supply of
goods. Such supply would be levied with applicable GST rate with ITC facility
available.
Health Care Services
In case where the patient is admitted in the hospital, basic health care
services are provided along with the bundle of services such as medicine, food,
diagnosis, consumables, room rent, nursing charges, doctor’s fees, etc. In this
case also health care being the principal supply and other supplies being ancil-
lary to health care.
Further Health Care Services as under mentioned are exempted from
levy of Central Tax under Serial No. 74 of Notification No. 12/2017, dated 28-6-
2017
(a) health care services by a clinical establishment, an authorised medical
practitioner or para-medics;
(b) services provided by way of transportation of a patient in an ambu-
lance, other than those specified in (a) above.
Further “health care services” means any service by way of diagnosis or treatment
or care for illness, injury, deformity, abnormality or pregnancy in any recognised
system of medicines in India and includes services by way of transportation of the
patient to and from a clinical establishment, but does not include hair transplant or
cosmetic or plastic surgery, except when undertaken to restore or to reconstruct
anatomy or functions of body affected due to congenital defects, developmental
abnormalities, injury or trauma;
Further Vide Circular No. 32/06/2018-GST, dated 12-2-2018 F. No.
354/17/2018-TRU - Food supplied to the in-patients as advised by the doc-
tor/nutritionists is a part of composite supply of healthcare and not separately
taxable. Other supplies of food by a hospital to patients (not admitted) or their
attendants or visitors are taxable.
In view of the above provisions and clarifications it can be concluded
that in respect of in-patients, ancillary supply along with the health care services
is a composite supply. As health care services are exempted entire gamut of an-
cillary supply also become exempted.
Electricity distribution
Supply of Electricity is exempted under Serial No. 104 vide Notification No.
2/2017, dated 28-6-2017

GST LAW TIMES  14th May 2020  35