No GST on supply of vaccines during the course of providing health care services to patients: AAR

Case Details: Authority for Advance Rulings, Chhattisgarh Anju Parakh, In re - [2023] 146 taxmann.com 221 (AAR-CHHATTISGARH)

Judiciary and Counsel Details

• • Sonal K. Mishra & Rajesh Kumar Singh, Member

Facts of the Case

The applicant-assessee was a practicing paediatrics and undertaking work of giving vaccination to children coming in clinic by charging fees. It sought advance ruling on applicability of GST on vaccination done by doctors in clinic.

AAR Held

The Authority for Advance Ruling observed that the vaccines sold through a separate chemist shop/pharmacy store owned by clinic/hospital across counter would be subjected to GST as supply of goods and GST would be applicable to it. If clinic/hospital itself divided contract into two parts as one for supply of healthcare services and other for supply/sale of vaccines, then such supply/sale of vaccines across counter would be subject to GST as there would be no composite contract for supply.

However, if vaccines would be provided in course of providing health care services to patients for treatment, then it would be considered as ‘composite supply’ of healthcare services being naturally bundled and being provided in conjunction with each other and therefore, it would be eligible for exemption under GST.