Implications of GST on Health Care Sector

Exempted Service:-

Health Care Service (Entry No.74)

Services by way of:-

a. Health care services by a clinical establishment, an authorized medical practitioner or paramedics.

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

Health Care Services (Sec.2 of CGST Act, 2017):-

As it is apparent from the definition of health care services, only services in Recognized systems of Medicines in India are Exempt under this entry.

Following systems of medicines are the Recognized systems of medicines in India:-

1) Yoga

2) Allopathy

3) Naturopathy

4) Unani

5) Ayurvedha

6) Homeopathy

7) Siddha

8) Any other system of medicine that may be recognized by Central Govt.

Gist Of Circulars Issued:-

• Rent of rooms provided to Inpatients in hospitals is Exempt (Circular No.27/01/2018)
• Supplies of Food by Hospitals to Patients (Not Admitted) or their attendants or visitors is Taxable (Circular No.32/06/2018)

Food supplied to the In-Patients as advised by Doctor/Nutritionists is a part of composite supply of Healthcare and not separately taxable.

• Services other than health care services in clinical establishment’s premises Supply of services other than healthcare services such as renting of shops, auditoriums in the premises of the clinical establishment, display of advertisements etc. will be subject to GST.

From the above inferences we can list out the services supplied by Healthcare Institutions as Taxable/Exempt:-