Case of Rajarajeshwari Hospitals Private Limited, AAR Tamil Nadu Ruling dated 29th January 2026. AAR ruled that medicines, surgical items, and implants used for patients admitted to the hospital are considered part of the “health care services” (composite supply) and are therefore exempt from GST under Entry No. 74 of Notification 12/2017 Central Tax (Rate). Medicines sold to outpatients (non-admitted patients) are considered a separate sale of goods, not a composite service, and are subject to GST.