Hospitals charges fees for various services provided along with medical and consultancy service provided by doctors such as nursing care, infrastructure facilities, paramedic care, emergency services, checking of temperature, weight, blood pressure etc. Also it hires senior doctors/ consultants/ technicians independently, without any contract of such persons with the patient; and pay them consultancy charges, without there being any employer-employee relationship. Health care service has been  defined to mean “any service by way of diagnosis/treatment/care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India “in the Notification No.12/2017 CT (R) dated 28.06.2017. Since the service provided by the doctors hired by the hospitals whether employee or not are health care services which is exempt under GST in the notification mentioned ibid.

Health care services provided by the clinical establishments will include food supplied to the patients; but such food may be prepared by the canteens run by the hospitals or outdoor caterers maybe outsourced. When outsourced there should be no ambiguity that the suppliers shall charge tax as applicable and hospital will get no ITC. If hospitals have their own canteens and prepare their own food, then no ITC will be available on inputs including capital goods and in turn if they supply food to the doctors and their staff; such supplies, even when not charged, may be subjected to GST.

Since Food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not separately taxable.

Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable. Therefore the foods supplied to the doctors and staff will be subjected to tax


  1. Health care service provided by the doctor to the hospital is exempt from GST irrespective of being employee or not.
  1. The foods supplied to in-patients from the in-house canteen of the hospital are exempt from the tax net whereas in case the supplied to others would be liable for charging GST.

Author Bio

Qualification: CA in Job / Business
Company: SHR & Co.
Location: Mumbai, Maharashtra, IN
Member Since: 22 Dec 2018 | Total Posts: 20
I am a part of the one Mumbai Based CA firm serving from last 50 years to the society . I am engaged especially in the field of Indirect taxation from last 4 years. View Full Profile

My Published Posts

More Under Goods and Services Tax


  1. Heetshah says:

    Dear Atharva,

    The question asked by you is too vague .

    The answer to the same would be Yes training provided by medical practitioner is taxable. However in case the training is carried out by educational institution in which the medical practitioner is providing the said training would be exempt.

    Therefore training provided by educational institutes or to educational institute would be exempt. otherwise same would be taxable.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

June 2021