Standalone Supply of Food to Patients not Composite Supply, no Exemption applicable under GST: AAR

The Authority for Advance Ruling (AAR) has ruled that the standalone supply of food to patients is not considered a composite supply and thus is not exempt from GST. The ruling clarified that food supplied independently to patients is subject to GST. This decision has implications for healthcare providers and hospitals that offer food services to patients, as it establishes that such services are taxable. The ruling also underlines the importance of distinguishing between standalone supplies and composite supplies under GST law. Healthcare providers will now need to account for GST on food supplies to patients, impacting their tax obligations.