GST Advance Ruling NO.GST-ARA-12/2025-26/B-87 on Hospital Supplies Withdrawn
The Maharashtra Authority for Advance Ruling did not decide on hospital supply taxability because the applicant withdrew their request.
- Ruling
- NO.GST-ARA-12/2025-26/B- 87 Mumbai, dt. 20/05/2026
- Dated
- 20 May 2026
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Sahrudaya Healthcare asked if hospital supplies are exempt from GST.
- The company requested to withdraw their application before a decision.
- The Authority closed the case without providing a legal ruling.
- No guidance on the taxability of medicines or implants was issued.
In short
Sahrudaya Healthcare asked the Maharashtra Authority for Advance Ruling (AAR) whether medicines and implants provided to patients are exempt from Goods and Services Tax (GST). Before the authority could issue a decision, the company chose to withdraw its application entirely.
What has changed
How it worked before
Businesses often look to advance rulings to understand if hospital-provided items like implants and medicines qualify as part of exempt healthcare services.
What has changed
Nothing has changed. Because the application was withdrawn, the authority did not issue a decision, meaning the tax status of these items remains exactly as it was before the request was filed.
Who this affects
Hospital owners and healthcare providers who are uncertain about the GST status of medicines and medical consumables supplied to in-patients.
What you should do
Do not rely on this document for tax planning. Since the authority did not rule on the merits, this order provides no legal precedent or guidance for your business. You must continue to follow your existing tax practices or consult a professional for your specific situation.
If you do nothing
If you assume this order provides an exemption for your hospital supplies, you risk underpaying your GST. A tax officer is not bound by this document and may issue a demand for unpaid taxes, interest, and penalties if they disagree with your interpretation. Always seek a formal opinion based on your specific facts rather than relying on withdrawn or undecided cases.
The terms explained
- Advance Ruling
- A formal decision by tax authorities on how GST laws apply to a specific business transaction.
- In-patient
- A patient who is admitted to a hospital for treatment and stays overnight or longer.
- Consumables
- Medical items used during treatment, such as bandages or syringes, that are not reused.
The ruling in detail
Authority for Advance Ruling
M/s. Sahrudaya Healthcare Pvt Ltd
NO.GST-ARA-12/2025-26/B- 87 Mumbai, dt. 20/05/2026 · Maharashtra
Questions before the authority
- Whether medicines, consumables, implants and other allied items supplied by hospitals to in patients is exempt under GST law under Healthcare Services?
Facts
The applicant is engaged in the business of providing healthcare services and the sale of pharma products. They filed an application seeking an advance ruling regarding the GST exemption status of medicines, consumables, and implants supplied to in-patients.
Ruling
The authority did not decide the merits of the application. The applicant voluntarily and unconditionally withdrew their application, and the authority allowed this request.
Reasoning
The applicant submitted an email dated 13.05.2026 expressing their intention to voluntarily withdraw the application. Consequently, the authority allowed the withdrawal under Section 98 of the CGST Act and MGST Act without examining the merits or facts of the case.
Provisions relied on
- Section 97 of the Central Goods and Services Tax Act, 2017
- Section 98 of the Central Goods and Services Tax Act, 2017
- Section 97 of the Maharashtra Goods and Services Tax Act, 2017
- Section 98 of the Maharashtra Goods and Services Tax Act, 2017
For the practitioner
This order provides **no substantive guidance** on the taxability of hospital supplies. It serves only as a procedural record of the **withdrawal of the application** by the taxpayer. Practitioners should note that the core legal question remains undecided by this authority.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/9-sahrudaya_healthcare_pvt_ltd_withdrawn_order.pdf
Legibility of the scan, as read: high.
Prepared 11-10-2026.
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