--- title: "New GST on Medical Equipment 2026: 5% Rate on Medical Devices" description: "New GST rate on medical equipment in 2026 is 5% on surgical and diagnostic devices. Apply the correct GST rate automatically with Busy on every invoice." canonical: "https://busy.in/gst-rates/medical-equipment/" author: "Apurva Maheshwari" published: "2025-07-21T08:23:04.000Z" category: "GST Rates" --- - The new GST rates for most medical equipment are set at 5%, with some items like hospital beds taxed at 18%. - Certain essential items like syringes and diagnostic kits remain taxed at a concessional 5% rate. - No major medical devices are fully exempt from GST, but some basic items might be taxed at 0% or 5% during emergencies. - Medical facilities can claim Input Tax Credit on GST if they are registered and use the equipment for business purposes. - GST has increased transparency and standardization in the healthcare sector, though it raises upfront costs for some buyers. # 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**](https://busy.in/gst-rates/medical-equipment/) is essential for doctors, healthcare institutions, and patients alike. This blog covers medical equipment [HSN code](https://busy.in/hsn/) and GST rate 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 5% or 18%. ## New GST Rate on Medical Equipment in India GST on medical equipment in India depends on the exact product classification and HSN code. From 22 Sep 2025, many commonly used medical devices and instruments are subject to 5% GST. However, medical furniture such as hospital beds and certain other equipment categories continue to attract 18% GST. ## Medical Equipment GST Rate Comparison | Medical Equipment Type | Common HSN Code | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) | | --- | --- | --- | --- | | Syringes and needles | 9018 | 5% | 12% | | Diagnostic kits and reagents | 3822 | 5% | 12% | | Medical grade oxygen | 2804 40 10 | 5% | 12% | | Surgical instruments | 9018 | 5% | 12% | | ECG machines and similar electro diagnostic equipment | 9018 | 5% | 12% | | X ray, MRI, CT scan, and radiology equipment | 9022 | 5% | 12% | | Thermometers for medical use | 9025 | 5% | 18% | | Pulse oximeters and similar medical monitoring devices | Check exact HSN | Generally 5%, subject to classification | Earlier classification could vary | | ICU and OT equipment | Check exact HSN | Usually 5% for medical devices, 18% for medical furniture and certain other items | Usually 12% or 18% depending on classification | | Hospital beds, stretchers, operating tables, and medical furniture | 9402 | 18% | 18% | ## **Are Any Medical Devices Exempt from GST?** Most commonly used devices and instruments are taxable, now often at 5%. Some nil rate or special exemptions may apply only to specifically notified products, so businesses should always verify the exact product classification before invoicing. Live Demo Available Today ## Register Medical Equipment as Fixed Assets in BUSY Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## **GST on Medical Equipment by Type** ### **Diagnostic and testing equipment** Diagnostic kits, ECG machines, imaging equipment, and many similar medical devices generally attract 5% GST after 22 Sep 2025. ### **Imaging and radiology equipment** X ray machines, CT scan machines, MRI related radiology equipment, and similar apparatus generally attract 5% GST when classified under the relevant medical equipment headings. ### **Surgical and clinical equipment** Surgical instruments, syringes, needles, and many similar instruments generally attract 5% GST. ### **Monitoring devices** Medical thermometers generally attract 5% GST. For pulse oximeters and similar devices, the exact HSN classification should still be checked before billing. ### **Hospital furniture** Hospital beds, stretchers, operating tables, and similar medical furniture generally continue to attract 18% GST ## How to Calculate GST on Medical Equipment To calculate GST on medical equipment, first identify the correct HSN code and applicable GST rate. Then apply the rate to the taxable value of the item. **Formula:** GST Amount = Taxable Value × GST Rate ÷ 100 **Invoice Total = Taxable Value + GST Amount** ### **Example 1** Surgical instrument price: Rs 10,000 GST rate: 5% GST amount = 10,000 × 5 ÷ 100 = Rs 500 Final invoice value = Rs 10,500 ### **Example 2** X ray machine price: Rs 2,50,000 GST rate: 5% GST amount = 2,50,000 × 5 ÷ 100 = Rs 12,500 Final invoice value = Rs 2,62,500 ### **Example 3** Hospital bed price: Rs 40,000 GST rate: 18% GST amount = 40,000 × 18 ÷ 100 = Rs 7,200 Final invoice value = Rs 47,200 ## [**Input Tax Credit**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) **(ITC) on Medical Equipment** Hospitals, clinics, and medical distributors can claim [**Input Tax Credit**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) 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**](https://busy.in/gst/a-guide-to-invoicing-under-gst/) with appropriate [**HSN code**](https://busy.in/hsn/) . 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**](https://busy.in/gst-rates/medical-equipment/) helps hospitals, healthcare providers, and patients stay compliant and cost-conscious. While essential items attract lower rates, others fall under the 5%–18% slabs. With proper HSN classification and invoicing, medical businesses can also benefit from [**Input Tax Credit**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) , making purchases more efficient. ## About the author **Apurva Maheshwari** 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 ### What is the GST on medical equipment in India? Many commonly used medical devices now attract 5% GST after 22 Sep 2025. However, medical furniture such as hospital beds generally continues to attract 18%. ### Is GST applicable on surgical instruments? Yes. Surgical instruments generally attract 5% GST after 22 Sep 2025 when classified under the appropriate medical equipment heading. ### Can hospitals claim ITC on medical instruments? ITC depends on the nature of the hospital’s outward supplies and GST treatment. It should not be assumed as a blanket yes in every case. ### Are thermometers and pulse oximeters taxed under GST? Yes. Medical thermometers generally attract 5% GST after 22 Sep 2025. Pulse oximeters also generally fall under the medical device bucket, but the exact HSN classification should be checked. ### Are any medical devices GST exempt? Most are not fully exempt. 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