--- title: "New GST for Hospital 2026: 0% Rate on Healthcare, Medical" description: "New GST rate on hospitals in 2026 is 0% on all medical treatments and healthcare services. Use Busy to auto-apply the correct GST on every invoice." canonical: "https://busy.in/gst-rates/hospital/" author: "Hitesh Aggarwal" published: "2025-05-16T10:26:23.000Z" category: "GST Rates" --- - Most core healthcare services provided by clinical establishments, authorised medical practitioners, and paramedics are exempt from GST. - Diagnostic services, ambulance services, and telemedicine services may be exempt when provided as part of eligible healthcare services. - Medicines supplied as part of healthcare services by hospitals may be treated differently from standalone retail pharmacy sales, which are taxed based on the applicable product classification. - Healthcare providers cannot claim Input Tax Credit on inputs used for exempt healthcare services and must follow applicable ITC rules for taxable supplies. - Proper GST compliance helps healthcare providers maintain accurate records and meet tax requirements. # New GST on Healthcare Services in India Healthcare is a fundamental need, and the government has ensured that essential medical services remain affordable. But what about GST? Is it charged on hospital bills or doctors’ fees? Let’s break down the **gst on healthcare services** and understand which services are exempt and which are taxable under GST. ## **New GST Rate on Allied Healthcare Services in India** The revised GST treatments for healthcare-related services and products apply from 22 September 2025. | Service Type | New GST Rate | Remarks | | --- | --- | --- | | Pathology and diagnostic tests | **Exempt** | When supplied by a clinical establishment / authorised medical practitioner as part of healthcare | | Ambulance services | **Exempt** | Transportation of patients as part of eligible healthcare services | | Pharmacy inside hospital | **Exempt** | Medicines supplied as part of inpatient treatment may form part of the healthcare service | | Independent pharmacy (retail store) | **Applicable GST rate based on product classification** | Medicines and healthcare products are taxed according to their applicable HSN classification | | Yoga / wellness centres (non-clinical) | **5% without ITC** | Covered under "beauty and physical well-being services" (Group 99972); reduced from 18% to 5% without ITC, effective 22 September 2025 | | Telemedicine / online doctor consultation | **Exempt** | Healthcare service provided by a medical practitioner | | Health insurance (individual policies) | **Exempt (0%)** | Individual health insurance policies moved to nil GST from 22 September 2025 | Note: GST rates on medicines and healthcare products depend on their specific HSN classification. Many medicines previously taxed at 12% were reduced to 5% from 22 September 2025. ## Are Healthcare Services Exempt from GST? Yes. Under the GST law, most healthcare services are exempt, particularly those related to diagnosis, treatment, or care provided by: - Hospitals - Clinics - Doctors - Nursing homes This ensures that essential medical services do not carry an added tax burden for patients. ## GST on Hospitals **gst on hospitals** providing clinical healthcare services is 0% (exempt). This includes: - Room charges (except for luxury rooms) - OPD and inpatient services - Emergency treatments - Surgical procedures - Diagnostic tests (MRI, blood tests, etc.) However, certain non-healthcare services offered by hospitals are taxable. Live Demo Available Today ## Register Medical Equipment as Fixed Assets for Depreciation Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## GST for Doctors **gst for doctors** providing independent healthcare services is also exempt. This applies to: - General practitioners - Specialists (cardiologists, dermatologists, etc.) - Visiting consultants at hospitals - Home-visit doctors ## When is GST Applicable? GST applies only if a doctor: - Offers non-medical consultancy services (like legal opinions, health coaching, medico-legal reports) - Runs a clinic offering additional taxable services (like cosmetic enhancements or wellness packages) Otherwise, regular doctor consultations and procedures are GST-free. **Get a Free Demo of –** [**Pharma Billing Software**](https://busy.in/accounting-software/pharmacy/) ## **Old GST on Allied Healthcare Services** **(Old GST Rates – Applicable Until 21st September)** | Pathology and diagnostic tests | **Exempt** | If part of healthcare service | | --- | --- | --- | | Ambulance services | **Exempt** | Transportation of patients as part of eligible healthcare services | | Pharmacy inside hospital | **Exempt** | If medicines are supplied as part of treatment | | Independent pharmacy (retail store) | **5% or 12%** | GST applicable based on medicine/product classification | | Yoga, wellness centres | **18%** | Taxable unless covered under applicable healthcare service exemption | ## **Input Tax Credit (ITC) in Healthcare** Healthcare providers cannot claim ITC on inputs and services used exclusively for providing exempt healthcare services. | Input/Expense | ITC Allowed? | | --- | --- | | Hospital furniture | **Depends on use and applicable ITC rules** | | Medicines used for exempt treatment | **No** | | Equipment (scanners, beds) | **Depends on use and applicable ITC rules** | | IT systems, admin software | **Depends on use and applicable ITC rules** | However, if a healthcare business provides both exempt and taxable services, it must separately track ITC eligibility and apportion ITC as per applicable GST provisions. ## Conclusion Understanding the **gst on healthcare services** helps both providers and patients avoid billing mistakes and stay compliant. In short, most medical services remain tax-free, with GST applicable only to select add-on or premium offerings. ## About the author **Hitesh Aggarwal** As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience. ## Frequently asked questions ### Are hospital services taxable under GST? No. **Core healthcare services** by hospitals are **exempt** from GST. ### What is the GST on hospitals if they charge high room rent? If non-ICU room rent exceeds ₹5,000/day, **5% GST** is applicable on that charge. ### Is there GST for doctors running clinics? No, if the clinic provides only **healthcare services**. Yes, if offering additional **non-healthcare services**. ### Are ambulance services exempt from GST? Yes. **Emergency ambulance services** are GST-free. ### Can healthcare businesses claim Input Tax Credit? No, not for **exempt healthcare services**. 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