IN THE APPELLATE AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
SRI SANJAY PANT AND SRI M. GIRIJA SHANKAR, MEMBER
Krishna Institute of Medical Sciences Ltd., In re
AAAR/AP/07(GST)/2022
19 December, 2022
Authorized Representative by: K.V Suresh Babu,
(Under Section 101 of the Central Goods and Service Tax Act and the Andhra Pradesh Goods and Service Tax Act).
At the outset, we would like to make it clear that the provisions of both the CGST Act and the APGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the APGST Act.
The present appeal has been filed under section 100 of the Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and APGST Act] by M/s. Krishna Institute of Medical Sciences Limited (herein after referred to as the Appellant) against the Advance Ruling No. AAR No.04/AP/GST/2022 dated 21-3-2022 : 2022 TaxPub(GST) 1183 (AAR-AP) issued by Authority for Advance Ruling, Andhra Pradesh.
1. Background of the Case:
The appellant, M/s. Krishna Institute of Medical Sciences Limited is a public limited Company, and a multi-specialty hospital, rendering healthcare services and claiming exemption on the said service vide Notification No. 12/2017 Central Tax Rate. Apart from healthcare services, the Company also makes pharmacy supplies based on doctors prescriptions to outpatients, which is taxable and accordingly the Company remits taxes on the same. The Company has been permitted to administer COVID-19 vaccine.
The Appellant sought clarification with regard to the activity of administering of COVID-19 vaccination by hospitals and approached the Authority for Advance Ruling on the following questions:
Question: Whether administering of COVID-19 vaccination by hospitals is Supply of Good or Supply of Service?
Question: Whether administering of COVID-19 Vaccine by clinical establishments (Hospitals) qualify as Health care services as per Notification No. 12/2017 Central Tax Rate dated 28-6-2017?
Question: Whether administering of COVID-19 vaccination by clinical establishment is exempt under GST Act?
The Authority for Advance Ruling Andhra Pradesh in its orders in AAR No.04/AP/GST/2022 dated 21-3-2022 held:
Answer: Administering of COVID-19 vaccination by hospitals is a Composite supply, wherein the principal supply is the 'sale of vaccine' and the auxiliary supply is the service of 'administering the vaccine' and the total transaction is taxable at the rate of principal supply i.e., 5%.
Answer: Administering of COVID-19 Vaccine by clinical establishments (Hospitals) is not qualify under Health care services as per Notification No. 12/2017 Central Tax Rate dated 28-6-2017 and not eligible for exemption.