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 codes, and the overall impact on the medical sector.
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%.
Medical Equipment Type | GST Rate |
---|---|
Syringes, Needles | 5% |
Diagnostic kits (e.g., HIV, Malaria) | 5% |
Medical-grade Oxygen | 5% |
X-ray Machines | 12% |
ECG, MRI, and CT Scan Equipment | 12% |
Surgical Instruments | 12% |
Hospital Beds, Stretchers | 18% |
Thermometers, Pulse Oximeters | 18% |
ICU and Operation Theatre Equipment | 12–18% |
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, etc.) | 9018 | 5% |
Thermometers | 9025 | 18% |
As of now, no major medical devices are fully exempt from GST. However:
Hospitals, clinics, and medical distributors can claim Input Tax Credit on GST paid on medical equipment purchases if they are:
However, charitable hospitals offering free services may face restrictions in claiming ITC, as their output services are not taxable.
While it increases compliance, GST also helps regulate the medical supply chain better.
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.