watch_later 14/03/21

Dealer runs a private hospital with a inhouse medical store.

Whether Input Tax credit on purchase of medicine can be claimed against all outward supplies of hospital or only against sale of medicines?

Dealer itc credit claim (purchases of medicines) on inpatient sales turnover or out patient sales turnover or total hospital collection turnover out put tax  applicable in gst act.

1 Response | Latest response: 14/03/21 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 14/03/21

If hospital and medical store are registered under single GST number, then ITC can be claimed on entire turnover of hospital including other sales.

However, ITC cannot be claimed if:

  1. Items are sold for free, destroyed
  2. Sale is exempted

So you have to check if any of the medicine is supplied as free and reverse proportional ITC.


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