Delhi High Court to Examine GST Applicability on Medicines, Consumables Supplied During In-Patient Treatment

The Delhi High Court has agreed to examine whether Goods and Services Tax (GST) can be levied on medicines and consumables supplied to patients as part of in-patient hospital treatment.

The notice was issued in a writ petition filed by Escorts Heart Institute and Research Centre Limited, a subsidiary of Fortis Healthcare, challenging a GST demand of ₹6.66 crore, along with interest and penalty.

The hospital contends that such supplies are inseparable from healthcare services, which are exempt from GST.

The Court will consider the scope of GST on bundled hospital services and medical supplies, a question with significant implications for hospitals and patients.

[Escorts Heart Institute & Research Centre v. UOI]