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):-

Health Care Services

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:-

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:-

Service Description Service Provided to Taxability
Room Rent/Treatment Inpatient Exempt
Consultation Fee Outpatient Exempt
Testing fee Patients Exempt
Rental Income Any Person Taxable
Advertisement Any person Taxable
Medical Shop Any Person Taxable (Unless the Medicines are Exempted)

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March 2021