Can the cost of non-medicines be reimbursed?
Q: When I am claiming my medical bills from my organization, I have found that few of the items are not getting approved (although those items are prescribed by the doctor and mentioned in the prescription too). When I enquired from local medical practitioner the answer I got was: I am from Karnataka and medical products attract local tax. If any medicine which attracts local tax under medicine, should be claimed and reimbursed under medical expense. There are items like Lactogen, Amul, Baby Foods, etc which are prescribed by doctor but does not attract any local tax hence cannot be claimed under medical expenses. Also there are items like antiseptic cream, tooth-paste or cosmetic creams which do not attract any local tax and cannot be claimed under medical expenses. But Dettol which attracts local tax can be claimed under medical expenses. I also understand from him this is the law of the state to impose tax on medical and non medical products. If state government declares one medicine as medicine and must attract local tax, is there anything by which central government states that the list is different?
A:The definition and classification of medicines is not based on levy of local taxes but on various Schedules of Drugs & Cosmetics Rules. Even if suggested by a doctor, Lactogen, Amul Baby Food, Toothpastes and Antiseptic Creams (the ones sold over the counter) are not medicines. However Dettol is a medicine as per Drugs & Cosmetics Rules. No organisation would reimburse the cost of non-medicines not only for reasons of classification but also Income Tax Laws in force.