The Kerala AAR has ruled that the supply of food, surgical implants and other consumables provided to inpatients forms part of composite supply with primary supply of healthcare services and therefore exempt.
No ITC is available on such supplies made to inpatients.
Eligible ITC on supplies made to outpatients shall be calculated as per the formula prescribed in Rule 42 of the CGST Rules, 2017
M/s. ST. THOMAS HOSPITAL