India's healthcare industry is rapidly evolving with digital health solutions like telemedicine and healthtech platforms. But with this evolution comes a need to understand the Goods and Services Tax (GST) framework applied to such services.
According to GST Notification No. 12/2017:
π¨ββοΈ Services by hospitals, clinics, and doctors β Exempt
π Ambulance services β Exempt
π§ββοΈ Nursing, midwifery, and paramedical services β Exempt
𧬠Blood banks and organ donation services β Exempt
Note: These exemptions apply only when services are provided by authorized medical establishments.
Telemedicine includes remote clinical consultations through video, phone, or digital platforms. As per the Ministry of Health's Telemedicine Practice Guidelines, these are recognized medical services.
π§ββοΈ Teleconsultation by a registered medical practitioner: Exempt
π§ββοΈπ» Teleconsultation by non-medical platforms (aggregators, apps): 18% GST
If the platform is merely facilitating the service (like an aggregator), GST may apply depending on how the transaction is structured.
π©Ί Diagnostic devices (glucometers, oximeters): 12% GST
π Medical instruments (ventilators, infusion pumps): 12% GST
πͺ Hospital beds, examination tables, wheelchairs: 18% GST
π Essential drugs (life-saving medicines): 5% GST
π Vaccines and general medicines: 12% GST
πΏ Ayurvedic/Homeopathic products: 12% GST
When services are bundled (e.g., a telemedicine kit with devices + consultation):
β οΈ The entire package is taxed at the highest rate among the items β usually 18%.
This is treated as a mixed supply under GST law.
| Provider Type | GST Registration | GST Rate |
|---|---|---|
| Hospitals/Clinics | Not required (if only exempt services) | 0% |
| Diagnostic labs (standalone) | Required | 18% |
| Telemedicine platforms | Required | 18% |
| Medicine retailers/pharmacies | Required if turnover > βΉ20 lakh | 5%β12% |
| Cosmetic/wellness clinics | Required | 18% |
πΊ High input GST on devices and diagnostics (12β18%)
π« No Input Tax Credit (ITC) for hospitals on exempt services
πΈ Increased costs for digital health platforms due to full GST liability
π Reduce GST on essential devices & digital platforms to 5%
β Allow ITC for hospitals and digital healthcare startups
βοΈ Clarify exemptions on digital consultations in official GST FAQs
Telemedicine and healthcare technology are transforming access to medical services in India. However, the GST framework remains complex and, in some areas, unclear. While essential healthcare services remain exempt, digital health services like telemedicine often attract 18% GST when offered through third-party platforms.
π Policy reforms, especially for digital-first healthcare, are essential to make services more affordable and ensure tax parity between offline and online care.