Page 87 - CA Final GST

Badlani Classes

* Allopathy * Yoga * Naturopathy * Ayurveda * Homeopathy *Siddha * Unani
*Any other system of medicine that may be recognized by Central Government.
“Authorized medical practitioner” means a medical practitioner registered with any of
the councils of the recognized system of medicines established or recognized by law in
India and includes a medical professional having the requisite qualification to practice in
any recognized system of medicines in India as per any law for the time being in force.
Paramedics: Paramedics are trained health care professionals, for example nursing
staff, physiotherapists, technicians, lab assistants etc. Services by them in a clinical
establishment would be in the capacity of employee and not provided in independent
capacity and will thus be considered as services by such clinical establishment . Similar
services in independent capacity are also exempted
Note : GST is not leviable on consultancy charges payable to doctors, consultants etc.,
retention money and food supplies to patients as advised by doctors. Other supplies of
food by a hospital to patients (not admitted) or their attendants or visitors are liable to
GST.

Note : Hospital Room Rent is exempt.

Note : Hospital canteen providing food to out-patients or outsiders is taxable
Case Food supplied to in-patients: Food supplied to the in-patients as advised by the
doctor/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.
Case Treatment along with Facilities provided such as TV, AC, room rent, meal to patient
(as a part of package): It would be Natural bundling in ordinary course of business and
Principal supply is “health care services”, which is exempt.
Case Margin retained on doctors hired: Hospitals charge patients, say, Rs. 10,000 and pay to
consultants/ technicians only Rs. 7,500 and keep balance for providing ancillary services
viz. nursing care, infrastructure facilities, paramedic care, emergency services, checking
of temperature, weight, blood pressure, etc.
Hospitals also provide healthcare services. The entire amount charged by them from the
patients including the retention money and the fee/ payments made to the doctors etc., is
towards the healthcare services provided by the hospitals to the patients and is exempt.
Que. Ayushman Medical Centre, a clinical establishment, offers the following services:
Reiki healing treatments. Such therapy is not a recognized system of 10,00,000
medicine in terms of Section 2(h) of Clinical Establishments Act, 2010.
Plastic surgeries. [One such surgery was conducted to repair cleft lip of 20,00,000
a new born baby . Consideration of `1,00,000 was charged for the same]
Air ambulance services to transport critically ill patients from distant 1,00,000
locations to Ayushman medical Centre
Alternative medical treatments by way of Ayurveda. Such therapy is not 2,50,000
a recognized system of medicine in terms of Section 2(h) of Clinical
Establishments Act, 2010
*excluding GST

Ayushman Medical Centre also operates a cord blood bank which provides services in
relation to preservation of stem cells. You are required to compute the value of supply
and GST liability [CGST & SGST or IGST ] of Ayushman Medical Centre, if any, in the
light of relevant GST provisions.

Note: All the services provided by Ayushman Medical Centre are intra State supplies.
Assume the rates of CGST, SGST and IGST to be 9%, 9% and 18% respectively. Page86
Ans. Value of supply and GST liability

Central Goods & Services Tax Act, 2017