AAR Tamil Nadu Clarifies GST on Outpatient Consultation and Medicine Supply by Hospitals
The present application (Form GST ARA-01), dated 24.02.2025, has been filed by a company named M/s. Theni Nattathi Kshatriya Kula Hindu Nadargal Uravinmurai Dharma Fund (appellant) before the Authority For Advance Ruling (AAR), Tamil Nadu No. 207, 2nd Floor, Papjm Building, No. 1, Greams Road, Chennai – 600 006. The benches comprised of Shri C.Thiyagarajan, I.R.S., Additional Commissioner/Member (ICGST), and Shri B.Suseel Kumar, B.E., MBA, Joint Commissioner/Member (SGST).
The applicant is registered under GST, hence possesses a GSTIN no. 33AAAAT3384MIZ8. The company is located at No. 12, White House Street, Theni, Tamil Nadu – 625531.
In the past, the applicant made a payment of application fees of Rs. 5,000 each under subrule (1) of Rule 104 of the CGST Rules, 2017 and the SGST Rules, 2017. M/s. Theni Nattathi Kshatriya Kula Hindu Nadargal Uravinmurai Dharma Fund is a Charitable Trust registered in Tamil Nadu, dedicated to serving society through their hospital. The hospital of application is involved in providing essential healthcare services to both inpatients and outpatients and also runs separate pharmacies inside the hospital for convenience. The applicant wants to point out that:
- Medicines are given only to patients who have prescriptions from the hospital’s doctors.
- Medicines are not sold to people who come in without a prescription from the hospital’s doctors.
Questions Asked by Appellant:
Seeking the present Authority For Advance Ruling (AAR), Tamil Nadu (No. 35/ARA/2025), dated 02.09.2025, the appellant has asked the following questions:
“Question 1. Whether the Consultation service and medicines supplied to outpatients attract GST?
Question 2. Can we treat consultation and supply of medicine to outpatients as a composite supply?
Question 3. If the above is a Composite Supply, is a single invoice required, or are multiple invoices with the same registration number sufficient?”
Answer Given by AAR Tamil Nadu:
The authority for advance ruling (AAR) has given the following answers to the questions asked by the appellant:
Answer 1. The medicines supplied to outpatients attract GST, but the consultation service supplied to outpatients is exempted under SLNo 74 of Notification No.12/2017-C.T.(Rate) dated 28.06.2017, as amended.
Answer 2. As per the reasons discussed in para. 6.10 and 6.11 in the advance ruling, ‘Consultation’ and ‘Supply of medicine’ to outpatients cannot be treated as a ‘Composite Supply’.
Answer 3. Authority did not answer this question, because it did not find answering this question as the answer to Query No. 2 above is in ‘Negative’, which means ‘No’.
Refer to the official advance ruling for complete information.
Citation: M/s. Theni Nattathi Kshatriya Kula Hindu Nadargal Uravinmurai Dharma Fund (AAR Tamilnadu); Advance Ruling No. 35/ARA/2025; 02/09/2025
