GST Applicability & Tax Rates on Health Care
The healthcare services delivered by clinical establishments authorised medical practitioners or paramedics are exempt under GST. However, this exemption will not be available to the services rendered in the form of provision of a room (excluding intensive care unit (ICU)/critical care unit (CCU)/neonatal intensive care unit (NICU)) by a clinical establishment for an amount exceeding Rs.5,000 per day. Furthermore, no input tax credit (ITC) can be claimed on these hospital room services.
The healthcare services offered in the form of a patient’s transportation in an ambulance, excluding those services mentioned in point (a) above, are also exempt from GST levy.Please note healthcare services exclude hair transplants and cosmetic/plastic surgery from their remit unless they have been rendered for restoration or reconstruction of anatomy or bodily functions damaged by congenital defects, injury, trauma, or developmental abnormalities. Thus, healthcare services only include diagnosing, treating, or managing disease, deformity, injury, abnormality, or pregnancy under their ambit.
| Medical service | Treatment under GST |
Outpatient Department Services (OPD) | Doctors’ consultation and treatment provided to patients without admittance to the hospital/clinical establishment are exempt from GST. However, GST is payable on the supply of medicines and implants through hospital-owned pharmacies to outpatients. |
Inpatient Department Services (IPD) | Inpatient services, including doctors’ fees and consultancy charges, and supply of medicines, implants, consumables, bed charges, operation theatre rent, equipment charges, etc., are exempt from GST and are considered a composite supply. However, when medicine and food are offered on an optional and distinct basis, then GST needs to be paid. |
Medical Test Services | All medical tests carried out in clinical establishments are exempt. |
Medical Counselling Services | A doctor’s consultancy given for the purpose of cure is exempt from GST. But a consultation provided with the purpose of care will attract GST. |
Cord Blood Bank Services | The services provided by blood banks for preserving stem cells are exempt from GST. |
Ambulance Services | No GST is levied on ambulance services. |
Veterinary Services | A doctor’s services rendered for the care of birds and animals are exempt under GST. |
| Miscellaneous service | Treatment of service |
Renting | A GST is levied on the rent paid to hospitals for the opening of medical shops on their premises |
Waste Treatment Facility | The services delivered by the operators of the common biomedical waste treatment facilities to clinical establishments for treatment or disposal of bio-medical waste is subject to 12% GST with ITC. |
Healthcare Services | SAC Code | GST Rate |
Healthcare services by a veterinary clinic for animals and birds | 9983 | NIL |
Provision of health care services by an authorised medical practitioner, a clinical establishment, or paramedics except for hospital rooms (excluding ICU/CCU/ICCU/NICU) costing over Rs.5,000 per day | 9993 | NIL |
Ambulance services | 9993 | NIL |
Rehabilitation, therapy, or counselling and such services provided by rehabilitation professionals recognised under the Rehabilitation Council of India Act, 1992, at medical establishments, educational institutions, or rehabilitation centres established by the Central Government, State Government, Union territory, or any entity registered u/s 12AA or 12AB of the IT Act, 1961 | 9993 | NIL |
Services delivered by a clinical establishment by way of room [other than CCU/ICU/ICCU/NICU] costing over Rs. 5,000 per day for the provision of healthcare services with no ITC claims | 9993 | 5% |
Human health and social care services | 9993 | 18% |
Services by way of treatment/disposal of biomedical waste or incidental processes by a prevalent bio-medical waste treatment facility to a clinical establishment | 9994 | 12% |
Healthcare Goods | HSN Code | GST Rate |
Drugs or medicines, this includes their salts and esters, and diagnostic test kits, specified in List 1 appended to Schedule 1 | 30 or any chapter | 5% |
Formulations created from the bulk drugs specified in List 2 appended to Schedule 1 | 30 | 5% |
Medicaments (inclusive of Ayurvedic, Siddha, Unani, Homoeopathic, and Bio-chemic systems) manufactured exclusively in accordance with the formulae depicted in the authoritative books specified in the 1st Schedule to the Drugs and Cosmetics Act, 1940, Homoeopathic Pharmacopoeia of India, the USA or the UK or the German Homoeopathic Pharmacopoeia and sold under the name as specified in this pharmacopoeia | 30 | 5% |
Drugs or medicines, this includes their salts and esters, and diagnostic test kits, specified at S.No.180 and formulations specified at S.No.181 in Schedule 1, intended for personal use | 9804 | 5% |
Other drugs and medicines for personal consumption | 9804 | 12% |
Orthopaedic appliances, including crutches, surgical belts, and trusses Splints and other fracture appliances Appliances that are carried or worn or implanted in the body to make up for a disability or some defect Artificial body parts Intraocular lens (excluding hearing aids) | 9021 | 5% |
Pharmaceutical goods that are specified in Note 4 to Chapter 3006, i.e., sterile surgical catgut, tissue adhesives for surgical wound closure, and other similar suture materials (this includes sterile absorbable surgical or dental yarns) Sterile absorbable surgical or dental haemostatics Sterile laminaria and sterile laminaria tents Steriledental or surgical adhesion barriers (absorbable or otherwise) Ostomy appliances Waste pharmaceuticals, excluding contraceptives | 3006 | 12% |
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