Is Provision of Medical Instrument for Use Without Any Consideration a Supply Under GST?

Keerthana S

doi:10.36948/ijfmr.2023.v05i05.6641

Is Provision of Medical Instrument for Use Without Any Consideration a Supply Under GST?

Author(s)	Keerthana S
Country	India
Abstract	With the advent of GST in India, supply became the taxable event and this made the place of supply and time of supply particularly, and the act of supply in general significant. The GST laws mandate registration under section 22 of the Central Goods and Services Tax Act, 2017 (hereinafter referred as the CGST act, 2017) for all business. Almost every realm of service is now covered under the scope of supply under section 7 of the CGST Act, 2017 and free supplies are also clearly covered within the scope of the said section. Few Pharmaceutical companies are engaged in importing and distributing medical equipment and providing healthcare solutions in India and beyond. These Companies place certain medical equipment at unrelated hospitals, labs etc., on a free-of-cost basis in exchange of a minimum purchase obligation arising out of an agreement between its clients. In a sequence of rulings from the AAR to the Kerala High Court and back to the AAR, questions regarding a unique case of free supply of Taxable Pharmaceutical Instruments based on a periodic supply contract was presented before the Authority. The discussed rulings answered what is Periodic Supply Contracts, Composite Supply, Naturally Bundled Supply and Indivisible Supply and raised various new questions and avenues for discussion. And, this article, in particular, attempts to analyse the nature of such purchase agreements and the possibility of availing Input Tax Credit on the medical instruments.
Keywords	Supply, Consideration, Free of cost supplies, Mixed supply, Composite supply
Published In	Volume 5, Issue 5, September-October 2023
Published On	2023-09-22
Cite This	Is Provision of Medical Instrument for Use Without Any Consideration a Supply Under GST? - Keerthana S - IJFMR Volume 5, Issue 5, September-October 2023. DOI 10.36948/ijfmr.2023.v05i05.6641
DOI	https://doi.org/10.36948/ijfmr.2023.v05i05.6641
Short DOI	https://doi.org/gssfnd

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Is Provision of Medical Instrument for Use Without Any Consideration a Supply Under GST?

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