New GST for Hospital Bill and Medical Services: What’s Taxable and What’s Not
Quick Summary
- Healthcare services like doctor consultations, surgeries, and diagnostic tests are exempt from GST in India.
- Room rent in a general ward is GST-exempt if it is below ₹5,000 per day, but AC rooms above this rate are taxed at 5%.
- Ambulance services are fully exempt from GST, while cosmetic surgeries are taxed at 18%.
- Medicines included in a healthcare package are GST-exempt, but those sold separately may have GST based on their type.
- Non-medical services and items, such as hospital canteen services, may attract GST, depending on their classification.
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.
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.
