New GST on Medical Equipment: Current Rates, Exemptions & Healthcare Impact
Medical equipment plays a crucial role in saving lives and supporting healthcare systems. From surgical tools to life-saving machines, they’re used in hospitals, clinics, and even at home. But are they affordable? Understanding the GST on medical equipment is essential for doctors, healthcare institutions, and patients alike. This blog covers GST rates, exemptions, HSN code s, and the overall impact on the medical sector.
Is GST Applicable on Medical Equipment?
Yes. Under India’s GST regime, most medical equipment and instruments are taxed, though at a relatively lower rate to support the healthcare sector.
The GST rate on medical equipment varies depending on the type of device and its classification, with some essential equipment taxed at a concessional rate, and others at standard rates like 12% or 18%.
New GST Rate on Medical Equipment in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for common medical equipment (no compensation cess).
New GST Rate on Common Medical Equipment
| Medical Equipment Type | New GST Rate |
|---|---|
| Syringes, Needles | 5% |
| Diagnostic kits (e.g., HIV) | 5% |
| Medical-grade Oxygen | 5% |
| X-ray Machines | 5% |
| ECG, MRI, CT Scan Equipment | 5% |
| Surgical Instruments | 5% |
| Hospital Beds, Stretchers | 18% |
| Thermometers, Pulse Oximeters | 5% / 18% |
| ICU & OT Equipment | 5%–18% |
Old GST Rate on Common Medical Equipment
(Old GST Rates – Applicable Until 21st September)
| Medical Equipment Type | GST Rate |
|---|---|
| Syringes, Needles | 5% |
| Diagnostic kits (e.g., HIV) | 5% |
| Medical-grade Oxygen | 5% |
| X-ray Machines | 12% |
| ECG, MRI, CT Scan Equipment | 12% |
| Surgical Instruments | 12% |
| Hospital Beds, Stretchers | 18% |
| Thermometers, Pulse Oximeters | 18% |
| ICU & OT Equipment | 12%–18% |
HSN Codes for Medical Equipment
| Equipment Description | HSN Code | GST Rate |
|---|---|---|
| Surgical instruments | 9018 | 12% |
| Electro-diagnostic apparatus | 9018/9019 | 12% |
| X-ray, MRI, CT scan machines | 9022 | 12% |
| Medical disposables (syringes) | 9018 | 12% |
| Thermometers | 9025 | 18% |
Are Any Medical Devices Exempt from GST?
As of now, no major medical devices are fully exempt from GST. However:
- Basic items like blood bags and contraceptives may fall under the 0% or 5% bracket.
- Exemptions can change during emergencies (e.g., reduced GST on oxygen concentrators during COVID-19).
Input Tax Credit (ITC) on Medical Equipment
Hospitals, clinics, and medical distributors can claim Input Tax Credit on GST paid on medical equipment purchases if they are:
- GST-registered
- Using the equipment for business or clinical services (not personal use)
- Issued a valid GST invoice with appropriate HSN code s
However, charitable hospitals offering free services may face restrictions in claiming ITC, as their output services are not taxable.
Impact of GST on the Healthcare Sector
- Made pricing more transparent across India
- Increased upfront costs for buyers in some cases
- Enabled ITC for private hospitals, making bulk purchases more cost-efficient
- Standardized the classification of goods using medical instruments GST rate categories
While it increases compliance, GST also helps regulate the medical supply chain better.
Conclusion
Understanding the GST on medical equipment helps hospitals, healthcare providers, and patients stay compliant and cost-conscious. While essential items attract lower rates, others fall under the 12%–18% slabs. With proper HSN classification and invoicing, medical businesses can also benefit from Input Tax Credit , making purchases more efficient.
I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant.
Frequently Asked Questions
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What is the GST on medical equipment in India?The GST ranges from 5% to 18%, depending on the type of medical equipment.
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Is GST applicable on surgical instruments?Yes, surgical instruments attract 12% GST under HSN code 9018.
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Can hospitals claim ITC on medical instruments?Yes, private hospitals and clinics can claim Input Tax Credit on GST paid.
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Are thermometers and oximeters taxed under GST?Yes, they fall under 18% GST as per standard classification.
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Are any medical devices GST-exempt?Most are not exempt. However, essentials like blood bags or items notified during emergencies may be taxed at 0% or 5%.