GST for Hospital Bill and Medical Services: What’s Taxable and What’s Not
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.
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Are Hospital Bills Fully GST Exempt?
No, not all charges on a hospital bill are exempt from GST. According to the GST regime:
- Healthcare services provided by a clinical establishment or medical practitioner are exempt.
- But non-medical services and separately billed items may attract GST.
GST Exemption on Medical Services
| 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.
GST Applicable on Hospital Bills – When and Where?
| 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 |
GST on In-Patient Packages
Full in-patient packages are exempt. This includes:
- Consultation
- Room rent
- Medicines (if not billed separately)
- Lab tests
But if items are broken out separately (like an implant), Input Tax Credit (ITC) may apply only to the taxable portion.
GST on Hospital Room Rent
| 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.
As a Chartered Accountant with over 18 years of experience, I have honed my skills in the field and developed a genuine passion for writing. I specialize in crafting insightful content on topics such as GST, income tax, audits, and accounts payable. By focusing on delivering information that is both engaging and informative, my aim is to share valuable insights that resonate with readers.
Frequently Asked Questions (FAQs)
- Is GST applicable on hospital bills?No, not for core healthcare services. But some parts like AC room rent, implants, or separate pharmacy bills may attract GST.
- What is the hospital bill GST rate in India?
- 0% for core services
- 5% for AC rooms above ₹5,000/day
- 5%–12% for implants and pharmacy items
- Are medicines billed through hospital exempt?If part of a healthcare package, yes. If sold separately, GST applies as per HSN rate.
- Is GST applicable on ambulance services?No. Ambulance services are fully GST exempt.
- Are cosmetic surgeries exempt from GST?No. Cosmetic or elective surgeries are taxed at 18%.
