The West Bengal Authority of Advance Ruling (AAR) has held that supply made by the service provider to the Central Hospital is a standalone service of supply of food and in no way can be considered as a composite supply of health care services.

The bench of Dr Tanisha Dutta and Joyjit Banik has observed that the Central Hospital, being a clinical establishment, provides food to the in-patients. Such food has been outsourced by the Hospital from the applicant. Therefore, food supplied to the in-patients as advised by the doctor/nutritionists constitutes a part of the composite supply of health care services in the hand of the Central Hospital itself. Supply made by the applicant to the Central Hospital is a standalone service of supply of food and in no way can be considered as a composite supply of health care services.

The applicant is a service provider and engaged in providing catering services to the hospital canteen. 

The applicant sought the advance ruling on the issue whether the supply of food to all the inpatients would be considered as exempted supply under Notification No. 12/2017 read with Section 8(a) of the GST Act.

Yet another issue raised was whether the applicant is correctly raising invoices by considering the services provided to the Central Hospital, South Eastern Railway, Garden Reach Road, Kolkata 700043 falling under the SAC 999311 which is exempted as per entry Notification 12/2017 Central Tax (Rate) dated 28.06.2017.

The applicant argues that services of providing diet to inpatients of the hospital is exempted vide serial no 74 of the Notification No 12/2017 Central Tax (Rate) dated 28.06.2017.

The AAR noted that the hospital provides such food to the in-patients in an outsourced manner i.e., food is supplied by a separate person according to the contract made by the hospital. Therefore, the scope of the applicant is limited in preparing food and supplies the same to the in-patients only.

The AAR held that supply of food by the applicant to all in-patients would not be covered under entry No 74 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 to be an exempted supply.

The AAR ruled that tax is payable by the applicant on his supply made to Central Hospital, South Eastern Railway.

Applicant’s Name: BAMAPADA JANA

Date: 01/10/2024