GST ON HEALTH CARE SERVICES

Posted by Akash Goel
On 28 Dec 2019

Is GST is applicable on Health care services?

No, GST is not applicable on Health care Services. Notification No. 9/2017- Integrated Tax dated 28.06.2014 has exempted health care services vide entry no 77.

What are Health care services?

Health care services has been defined as any services by way of:-

a) Diagnosis or

b) Treatment of care of illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India

c) Also includes services by way of transportation of the patient to and from clinical establishment.

                      But it does not include hair transplant or cosmetic or plastic surgery except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma.

What is clinical establishment?

Clinical Establishment means a

  • Hospital
  •  nursing home
  •  Clinic
  •  sanatorium or any other institution by whatever name called, that offers  services or facilities requiring diagnosis or treatment or care of:-
  • Illness
  • Injury
  • Deformity
  • Abnormality
  • Pregnancy

If clinical establishment is providing any non health care services along with health care services, then whether GST is applicable or not?

Yes,  GST is applicable if the clinical establishment is providing any non health care services along with the health care services. Non health care are subject to GST if the aggregate turnover of Health care services and non health care services exceed Rs 20 lakhs

For e.g.  — A person having hospital in Delhi, Haryana and UP.  He has shops also  in these states which has been given on rent. His turnover from the hospital and rental income from the shops crosses the limit of Rs 20 lacs in a year. He has to take registration on these states as the threshold limit requiring registration has crossed

What are the other exemption available  in Health care services?

  • Services provided by veterinary doctors       

This entry exempts services in relation to health of animals and birds from GST.

  • Blood Bank

        Services provided by cord/other blood bank for preservation of stem cells or  any other services for such preservation are exempt from GST.

  • Ambulance Services

       Providing of ambulance services are also exempt from the GST.

  • Medical Tests

      Medical Test (either done in own clinic or done in the separate clinical establishment setup specially for such test) are exempt from GST.

  • Bio Medical waste

     Services provided to hospital by way of treatment and disposal of bio medical waste is not taxable in GST.

  • Room rent for patient only

Rent charged for room for patients are not taxable under GST.

However if room is rented to chemist shop or providing room on rent to care taker , then it would attract GST.

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