GST on supply of implants and artificial limbs to patients- Whether Healthcare Services or not??
A question was raised in an advance ruling application by M/s Baby Memorial Hospital Limited before Kerala Advance Ruling Authority as under:
“Whether the Applicant is liable to pay GST on supply of implants and artificial limbs made during the course of treatment to patients?”
In response to the above application, the Advance Ruling Authority observed and placed ruling as below:
- The supply of artificial body parts/ devices such as heart valve, artificial kidney, artificial joints, coronary stents etc. which are implanted in the body essentially by means of a surgical procedure can be classified as a composite supply where the principal supply is of healthcare services.
- In case of artificial body parts/ devices which are worn/ attached/ fitted/ fastened to the body for which a surgical procedure may or may not be required; the nature/ taxability of supply has to be determined on a case-to-case basis considering the facts and circumstances of each case.
- The supply of goods like wheel chairs, tricycles etc. to the patients will not come under the classification of healthcare services.
You may refer the detailed Order of the Kerala Advance Ruling Authority attached with this article.
Disclaimer: The above article is based on the Advance Ruling of Kerala AAR and is meant for educational purposes only. Readers are therefore, requested to act diligently and under consultation with any professional before applying the information contained in this article. Taxwink is not responsible for any loss or damage caused to any person from the information contained in this article. For any user support mail at: support@taxwink.com
