GST Applicable On Fees Collected From Nurses For Imparting Practical Training - AAR Karnataka

The Karnataka Authority of Advance Ruling (AAR) ruled on several questions posed by M/s SPANDANA PHARMA, a healthcare service provider. Here's a summary of the ruling:

1. 1. Medicines, Drugs, and Consumables: The supply of medicines, drugs, and consumables used in providing healthcare services to in-patients during diagnosis and treatment qualifies as a "Composite Supply" of healthcare services. It is exempt from GST under entry No. 74(a) of Notification No. 12/2017-Central Tax (Rate) dated: 28.06.2017, subject to specified conditions.

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3. 2. Supply of Food to In-patients: Similarly, the supply of food to in-patients is considered a "Composite Supply" of healthcare services and qualifies for exemption from GST under the same entry and conditions mentioned above.

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5. 3. Retention Money: GST is not applicable on money retained by the applicant.

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7. 4. Fees for Practical Training: However, GST is not exempted on fees collected from nurses and psychologists for imparting practical training. This means that the fees collected for such training are subject to GST.

In essence, while certain aspects of healthcare services provided by M/s SPANDANA PHARMA are exempt from GST, fees collected for practical training are not exempt and are subject to GST.