Page 120 - GSTL_20th August 2020_Vol 39_Part 3

334 GST LAW TIMES [ Vol. 39
stents, and other consumables, come under ancillary supplies and accordingly
tax liability has to be determined under Section 8 of CGST Act, 2017. Since the
entry of ”Services by way of - (a) health care services by a clinical establishment, and
authorised medical practitioner or para medics;” at Sl. No. 74 Heading 9993 vide No-
tification No. 12/2017-Central Tax (Rate), dated 28-6-2017 is nil rated, the supply
of medicines, drugs, implants, stents, and other consumables are exempted from
liability under GST.
Even the Circular No. 32/06/2018-GST (F. No. 354/17/2018-TRU), dated
12-2-2018 released on the approval of the CGST Council 25th Meeting clarifies
the issue on the similar lines stating that the food supplied to in-patients is part
of composite Supply of health care and not separately taxable, whereas other
supplies of food by a hospital to patients (not admitted) or their attendants or
visitors are taxable. In this context, we are of the opinion that the same principle
is applicable to the medicines, drugs, stents, implants etc. administered to in-
patients during the medical treatment or procedure.
8. In view of the observations stated above, the following ruling is is-
sued.
RULING
Question : Tax liability on the medicines supplied to In-patients
through pharmacy.
Answer : The supply of medicines supplied to In-patients through
pharmacy are not liable to tax, being a part of the composite
supply of health care services under Sl. No. 74 Heading 9993
vide Notification No. 12/2017-Central Tax (Rate), dated
28-6-2017 which are nil rated.
Question : Tax liability on the medicines, drugs, stents, implants etc.
administered to in-patients during the medical treatment or
procedure.
Answer : Not liable to tax as explained above.

_______

2020 (39) G.S.T.L. 334 (A.A.R. - GST - A.P.)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
ANDHRA PRADESH
S/Shri D. Ramesh, Member (State Tax) and M. Sreekanth,
Member (Central Tax)
IN RE : SHILPA MEDICARE LTD.
AAR No. 05/AP/GST/2020, dated 24-2-2020
Transfer of ongoing business on monetary consideration - Supply of
goods or supply of services - Transfer neither in course of business nor for fur-
therance of business but onetime affair made where business including assets
sold in entirety or independent part thereof - Though transfer of business as-
sets amount to ‘supply of goods’, transfer of business in its entirety along with
capital assets cannot be grouped under ‘supply of goods’ but was supply of
GST LAW TIMES  20th August 2020  120