BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
When you receive a hospital bill, it’s common to wonder—is GST included? Are all services taxed, or only some of them? With healthcare being a critical sector, the government has given several exemptions under the GST (Goods and Services Tax) regime. However, certain services and charges are taxable. Here’s a complete guide on gst for hospital bill and medical services in India.
No, not all charges on a hospital bill are exempt from GST. According to the GST regime:
| Service/Item | GST Applicable | Remarks |
|---|---|---|
| Doctor consultation (in-patient) | No | Exempt healthcare service |
| Surgery and medical procedures | No | Exempt if done at registered hospital |
| Pathology and diagnostic tests | No | GST exempt |
| Room rent in general ward (non-AC) | No | Exempt if below ₹5,000/day |
These services are under SAC Code 9993 – Human Health and Social Care Services.
| Component of Bill | GST Rate | Reason |
|---|---|---|
| AC room rent (above ₹5,000/day) | 5% | Taxed if not part of healthcare package |
| Implants or prosthetics | 5% / 12% | Check product HSN Code |
| Pharmacy/medicines sold separately | 5% / 12% / 18% | Depends on type of drug |
| Cosmetic or elective surgeries | 18% | Not exempt under healthcare |
| Ambulance services | No | Fully exempt |
| Hospital canteen (external contractor) | 5% | Treated as supply under restaurant service |
Full in-patient packages are exempt. This includes:
But if items are broken out separately (like an implant), Input Tax Credit (ITC) may apply only to the taxable portion.
| Room Type | GST Applicable | GST Rate |
|---|---|---|
| General ward (non-AC, ₹5,000/day) | No | 0% |
| AC room or room rent > ₹5,000/day | Yes | 5% |
| ICU or emergency ward | No | 0% |
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Understanding the gst for hospital bill and medical services ensures patients aren’t overcharged and providers remain compliant. Always review the bill for GST charges and claim ITC if you’re a business or NGO receiving taxable medical services.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.