GST on Health Care Services in India : Analysis

By | December 20, 2017
(Last Updated On: May 28, 2018)

GST on Health Care Services

Analysis of GST on Health Care Services in India

Is GST leviable on Health Care Services ?

Yes

Human health services is covered in Service Accounting Code 99931

999311: Inpatient services

999312 : Medical and dental services

999313 : Childbirth and related services

999314 : Nursing and physiotherapeutic services

999315 : Ambulance services

999316 : Medical laboratory and diagnostic-imaging services

999317 : Blood, sperm and organ bank services

999319 : Other human health services including homeopathy, unani, ayurveda, naturopathy, acupuncture and the like

[ As per Sr No 604 of annexure to Notification No 11/2017 Central Tax (Rate) Dated 28th June 2017 and Notification No 8/2017 Integrated Tax (Rate) Dated 28th June, 2017  ]

What are the GST Rates on Health Care Services ?

Human health and social care services.  : CGST Rates 9% and SGST Rates 9%/ IGST Rates 18%

[ As per Sr No 31 of Notification No 11/2017 Central Tax (Rate) Dated 28th June 2017 and Notification No 8/2017 Integrated Tax (Rate) Dated 28th June, 2017  ]

Is there any exemptions from GST on Health Care Services ?

There is  Exemption from GST on following Health Care services

i )  Services provided by the cord blood banks by way of preservation of stem cells or any other service in relation to such preservation.

ii)  Services by way of—

(ahealth care services by a clinical establishment, an authorised medical practitioner or para-medics;

(b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above.

“health care services” means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma; [ Clause 2(zg) ]

“clinical establishmentmeans a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases; [ Clause 2(s) ]

authorised medical practitioner” means a medical practitioner registered with any of the councils of the recognised system of medicines established or recognised by law in India and includes a medical professional having the requisite qualification to practice in any recognised system of medicines in India as per any law for the time being in force;  [ Clause 2(k) ]

[ As per Sr No 73 and 74 respectively of Notification No 12/2017 Central Tax (Rate) Dated 28th June 2017 and Notification No 9/2017 Integrated Tax (Rate) Dated 28th June, 2017 ]

Is there any exemptions from GST on waste treatment facilities?

There is Exemption from GST on following :-

Services provided by operators of the common bio-medical waste treatment facility to a clinical establishment by way of treatment or disposal of bio-medical waste or the processes incidental thereto.

[ As per Sr No 75  of Notification No 12/2017 Central Tax (Rate) Dated 28th June 2017 and Notification No 9/2017 Integrated Tax (Rate) Dated 28th June, 2017 ]

Is there any exemptions from GST if facilities of bathroom, washrooms, lavatories, urinal or toilets are provided to Public ?

There is  Exemption from GST on following :-

Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets.

[ As per Sr No 76  of Notification No 12/2017 Central Tax (Rate) Dated 28th June 2017 and Notification No 9/2017 Integrated Tax (Rate) Dated 28th June, 2017 ]

 

GST payable on rental premises taken by Hospital on lease : AAR

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