Goods & Services Tax GST (India)

The GST applicability to Healthcare Services in India:

Services by way of- (a) health care services by a clinical establishment, an authorised medical practitioner or para-medics; (b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above. The GST Rate is Nil.

Exemption for Healthcare Services:

Generally, healthcare services provided by hospitals, clinics, or medical practitioners are exempt from GST. This exemption covers services such as diagnosis, treatment, care, and counseling provided by healthcare professionals.

Healthcare Services Defined:

 The term "healthcare services" includes services provided by physicians, surgeons, dentists, nurses, paramedics, and other healthcare professionals. It also covers services provided by hospitals, nursing homes, diagnostic centers, and clinics.

Exemption for Specific Services:

While most healthcare services are exempt, certain specific services or goods related to healthcare might attract GST. For example: Services such as cosmetic surgery, elective procedures, and health check-ups that are not essential for medical treatment may attract GST. Goods such as medical devices, implants, and consumables might be subject to GST unless specifically exempted.

Input Tax Credit (ITC): 
a. ITC on Inputs: Healthcare providers can claim ITC on inputs purchased for providing healthcare services. This includes goods such as medicines, medical devices, consumables, equipment, and other items used directly in the provision of healthcare services.

b. ITC on Input Services: Input Tax Credit can also be claimed on input services that are used for the business operations of healthcare providers. This may include services such as renting or leasing of premises, maintenance and repair services, transportation services, insurance services, and other services necessary for the functioning of the healthcare facility.

c. ITC on Capital Goods: Healthcare providers can avail of ITC on capital goods purchased for use in their business operations. This includes items such as medical equipment, furniture, fixtures, and machinery used for providing healthcare services.

d. Apportionment of ITC: In cases where healthcare providers offer both taxable and exempt services, they need to apportion the input tax credit between taxable and exempt supplies based on a fair and reasonable method as prescribed under GST law.

Conditions for Availing ITC:

a. The healthcare provider must be registered under GST and comply with GST regulations to claim Input Tax Credit.
b. ITC can only be claimed for inputs, input services, and capital goods used for the purpose of business and not for personal use.
c. Proper documentation and compliance with GST regulations are essential for claiming and availing ITC.

Registration Requirements: Healthcare service providers whose aggregate turnover exceeds the threshold limit specified under GST law are required to register for GST and comply with GST regulations. However, small healthcare providers whose turnover is below the threshold limit may opt for voluntary registration.

Compliance and Documentation: Healthcare service providers need to maintain proper records and documentation of their transactions, including invoices, receipts, and other relevant documents, to comply with GST regulations.

Taxable Healthcare Services: While most healthcare services are exempt, certain services provided by healthcare providers, such as health insurance services or services provided for a fee by fitness centers or spas, may be taxable under GST.

The GST applicability and rates for various healthcare-related services in India:

Healthcare Service	HSN Code	GST Applicability	GST Rate
Diagnostic Services	9993	Taxable	18%
Health Check-up Services	9993	Taxable	18%
Medical Consultation Services	9993	Exempt	0%
Health Insurance Services	9993	Taxable	18%
Fitness Services	9993	Taxable	18%
Pharmaceuticals	Chapter 30	Taxable	Varies (Usually 5%-18%)
Medical Devices	Chapter 90	Taxable	Varies (Usually 5%-18%)
Hospitalization Services	9993	Exempt	0%
Inpatient Care Services	9993	Exempt	0%
Outpatient Care Services	9993	Exempt	0%
Ambulance Services	9993	Exempt	0%
Nursing Services	9993	Exempt	0%
Blood Donation Services	9993	Exempt	0%
Medical Test Interpretation	9993	Exempt	0%
Medical Imaging Services	9993	Exempt	0%
Preventive Healthcare Programs	9993	Exempt	0%

GST on hospital room rents

Room Rent	Applicable GST	SAC Code
Less than Rs. 5,000	0%	9993
More than Rs. 5,000 (other than ICU/CCU/ICCU/NICU)	5% (without input tax credit)	9993
Intensive Care Units (ICU)/ Critical Care Units (CCU)/ Intensive Cardiac Care Units (ICCU)/ Neonatal Intensive Care Units (NICU)	0%	9993

Healthcare Services GST Return Packages