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% .

New 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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GST Rates

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.

New GST Rate on Medical Services in India

The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected positions for common medical services (no compensation cess). Existing exemptions continue as per Appendix.

New 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

New GST Applicable on Hospital Bills – When and Where?

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

Old GST Exemption on Medical Services

(Old GST Rates – Applicable Until 21st September)

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.

Old 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.

Rithesh Bajoriya

Chartered Accountant

MRN No.: 407339

City: Varanasi

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

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%.

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