Medicine purchases by inpatients exempt from GST, says Tamil Nadu AAR

But says drugs, consumables purchased by outpatients in the course of treatment will be taxed

Medicines and consumables used in the course of providing health care services to a patient admitted in the hospital will be exempt from the goods and services tax (GST), according to a recent ruling by Tamil Nadu’s Authority for Advance Ruling (AAR).

On the other hand, an out-patient will be charged GST for medicines and consumables bought that were prescribed in the course of providing health care services, the AAR said. There are different rates for different medicines.

In the case of inpatients, room rent is exempt from GST only up to Rs 5,000 per day with effect from July