.gif)
Key Highlights
- Medical consultations, inpatient and outpatient treatments, emergency care, and diagnostic services provided by doctors and hospitals are not subject to GST.
- Non-medical services, such as conducting workshops, renting hospital rooms above ₹5,000 per day (except ICU), performing cosmetic surgeries, and selling medical products, attract GST.
- Essential medicines and devices, such as orthopaedic implants, have lower GST rates (5%), while biomedical waste treatment services and certain pharmaceutical products have higher rates (12%).
You are a dedicated doctor, spending long hours treating patients, managing your clinic, and ensuring the best healthcare services. One day, you receive a notice regarding Goods and Services Tax (GST) , and suddenly, tax compliance feels like a headache you didn’t sign up for.
If you have ever wondered whether GST applies to doctors, what services are taxable, and how to stay compliant, you are not alone. Many doctors struggle with GST complexities, fearing penalties and additional paperwork.This guide breaks down GST for doctors simply and practically.
GST on Healthcare Services and Doctor’s Consultation
Under the current tax system, healthcare services by doctors and hospitals are exempt from GST. These exemptions, initially granted in June 2017, were later modified through a notification issued on 13th July 2022. Here are the details.
| Service type | GST applicability | Details |
| Healthcare services | Exempt | Healthcare services offered by clinical establishments, paramedics, and authorised medical professionals are exempt from GST. This exemption covers services related to diagnosing, treating, or managing diseases, deformities, injuries, abnormalities, or pregnancy. |
| Outpatient department services (OPD) | Exempt | Consultation and treatment by doctors offered to patients without hospitalisation or admission to a clinical facility are not subject to GST. However, GST applies to the supply of medicines and implants sold through hospital-owned pharmacies to outpatients. |
| Inpatient department services (IPD) | Exempt | Inpatient services, such as doctor fees, consultation charges, medication, implants, consumables, bed charges, operation theatre rental, equipment charges, and more, are exempt from GST and treated as a composite supply. |
| Emergency services | Exempt | Emergency healthcare services provided by doctors are not subject to GST. |
| Diagnostic and pathological services | Exempt | Diagnostic and pathological services offered by doctors are not subject to GST. |
| Transportation services | Exempt | Healthcare services, including patient transportation by ambulance, are exempt from GST |
| Assisted reproductive technology (ART) and in-vitro fertilisation (IVF) | Exempt | Services offered through ART or IVF are exempt from GST since they are categorised as healthcare services. |
| Bio-medical waste treatment services | 12% GST | Operators of bio-medical waste treatment facilities offer services to clinical establishments that are subject to a 12% GST, with the option to claim an input tax credit (ITC). |
| Room services | GST applicable | The exemption is not applicable to services provided by a clinical establishment in the form of room accommodation (excluding ICU/CCU/NICU) when the amount exceeds ₹5,000 per day. |
| Non-medical services | GST applicable | Services that are non-medical in nature, such as conducting workshops, delivering lectures, or providing consultancy to businesses, are liable to GST. |
| Sale of medical products | GST applicable | Promoting or selling products such as supplements, medicines, or similar items could be subject to GST, as these activities are not considered healthcare services. |
| Cosmetic and plastic surgery | GST applicable | Hair transplants and cosmetic or plastic surgery are not considered part of healthcare services except when performed to restore or reconstruct anatomy or bodily functions affected by congenital defects, injury, trauma, or developmental abnormalities. |
Note : Healthcare providers, including doctors, are exempt from GST and cannot claim input tax credits (ITC). The 5% GST on hospital rooms without ITC increases medical costs, while hospitals with waste treatment plants pay 12% GST and are ineligible to claim ITC benefits.
SAC and HSN Codes for Doctors
There is no GST on consultation services provided by doctors. Healthcare services fall under Chapter 99. Here are the HSN and SAC codes and GST for hospitals and doctors.
| Healthcare services | SAC code | GST rate |
| Healthcare services by a veterinary clinic for birds and animals | 9983 | NIL |
| Provision of healthcare services by a licensed medical practitioner, clinical facility, or paramedics, excluding hospital rooms (except ICU/CCU/ICCU/NICU), where the daily cost exceeds ₹5,000. | 9993 | NIL |
| Ambulance services | 9993 | NIL |
| Rehabilitation, therapy, counselling, and similar services offered by rehabilitation professionals recognised under the Rehabilitation Council of India Act, 1992, at medical facilities, educational institutions, or rehabilitation centres established by the central or state governments, union territories, or any organisation registered under sections 12AA or 12AB of the Income Tax Act, 1961. | 9993 | NIL |
| Services provided by a clinical establishment for room charges (excluding CCU, ICU, ICCU, and NICU) that exceed ₹5,000 per day for healthcare services, where no input tax credit (ITC) claims are made. | 9993 | 5% |
| Human health and social care services | 9993 | 18% |
| Services related to the treatment or disposal of biomedical waste, along with any associated processes, provided by an established biomedical waste treatment facility to a clinical establishment. | 9994 | 12% |
| Healthcare goods | HSN code | GST rate |
| Drugs or medicines, including their salts and esters, as well as diagnostic test kits listed in List 1 of Schedule 1. | 30 or any chapter | 5% |
| Formulations made from the active pharmaceutical ingredients listed in List 2 attached to Schedule 1. | 30 | 5% |
| Medicines (including those from Ayurvedic, Siddha, Unani, Homoeopathic, and Bio-chemic systems) produced strictly following the formulas outlined in the authoritative texts listed in the 1st Schedule of the Drugs and Cosmetics Act, 1940, the Homoeopathic Pharmacopoeia of India, the USA or the UK, or the German Homoeopathic Pharmacopoeia and marketed under the names specified in these pharmacopoeias. | 30 | 5% |
| Drugs or medicines, including their salts and esters, as well as diagnostic test kits listed under serial number 180 and formulations under serial number 181 in Schedule 1, intended for personal use. | 9804 | 5% |
| Other medications and drugs for personal use | 9804 | 12% |
| Orthopaedic devices, such as crutches, surgical belts, and trusses Splints and other fracture-related devices Prosthetic body parts Devices that are worn, carried, or implanted in the body to compensate for a disability or defect Intraocular lenses (excluding hearing aids) | 9021 | 5% |
| Pharmaceutical products mentioned in Note 4 to Chapter 3006 include sterile surgical catgut, tissue adhesives for closing surgical wounds, and other similar suture materials (such as dental yarns or sterile absorbable surgical). Additionally, this category covers sterile absorbable surgical or dental haemostatics, laminaria tents, sterile laminaria, and sterile dental or surgical adhesion barriers (whether absorbable or not). It also includes ostomy appliances and waste pharmaceuticals, except for contraceptives. | 3006 | 12% |
Court Judgements on GST for Doctors
Multiple rulings related to GST for doctors exist. For instance, the Gujarat Appellate Authority of Advance Ruling (AAAR), in the case of M/s Baroda Medicare Pvt Ltd (2022), ruled that occupational health check-up (OHC) services provided by hospitals, including their doctors, paramedics, and nursing staff, are exempt from GST. This exemption also applies to health check-up camps conducted outside hospitals.Another example is the Maharashtra Authority of Advance Ruling (AAR) in the case of M/s Jyoti Ceramic Industries Pvt Ltd (2022), which clarified that services provided by a dentist for the fitment of artificial ceramic teeth, bridges, crowns, and dental restoratives are exempt from GST, provided they are not part of cosmetic treatment.
Decoding GST: A Doctor’s Perspective
In the ever-evolving healthcare landscape, understanding GST is crucial for doctors. While essential medical services remain tax-free, non-medical activities attract GST. Staying informed ensures compliance and financial efficiency. By managing tax obligations smartly with the help of a GST calculator , healthcare professionals can focus on their true calling, providing quality care to their patients.
FAQS - FREQUENTLY ASKED QUESTIONS
Which medical services are exempt from GST?
Most healthcare services, including doctor consultations, outpatient treatments, inpatient services, ambulance services, and services provided by blood banks, are exempt from GST. However, unless medically necessary, GST applies to non-essential services like hair transplants or cosmetic surgeries.
What changes were made to GST rates for healthcare services?
Recent changes included reducing the GST on appliances like ostomy and orthopaedic devices from 12% to 5%. Additionally, GST on services related to bio-medical waste treatment for clinical establishments was set at 12%, with the option to claim input tax credit.
Do doctors need to register for GST?
Doctors need to register for GST only if their annual turnover exceeds ₹20 lakh (in normal states) or ₹10 lakh (in special states) or if they provide taxable services (like selling medicines through their clinics). GST registration is also required for multi-state operations.
Are hospital room charges subject to GST?
If a hospital room charge exceeds ₹5,000 per day (excluding ICU/CCU/NICU), it will attract a 5% GST rate. However, input tax credit (ITC) cannot be claimed for these charges. This GST applies to the basic room charges, excluding food and other services.
Can a doctor in private practice claim GST exemptions?
Doctors in private practice are eligible for GST exemptions on healthcare services as long as they are providing medically necessary treatments. However, they must comply with GST rules if they engage in taxable services, such as selling medical products or renting space for commercial use.
What are the HSN and SAC codes for healthcare services under GST?
Healthcare services provided by doctors and clinical establishments generally fall under SAC code 9993 and are exempt from GST. Specific codes apply to items such as veterinary services (9983) and biomedical waste disposal (9994), with corresponding GST rates.
Are services provided by rehabilitation professionals exempt from GST?
Services provided by rehabilitation professionals, such as physiotherapists or occupational therapists, are exempt from GST if they work in a medical establishment or rehabilitation centre recognised by the government or registered under the IT Act.
Is GST applicable on medical implants used during surgery?
Yes, GST applies to medical implants, such as artificial joints, pacemakers, and other implants used during surgery. The standard GST rate for medical implants is 5%, but hospitals cannot claim ITC on these items.
What is the GST rate on biomedical waste treatment services for clinical establishments?
The GST rate on services provided by operators of biomedical waste treatment facilities to clinical establishments is 12%. This service includes treating or disposing of medical waste generated in healthcare facilities.
Are stem cell treatments exempt from GST?
Yes, stem cell treatments offered by blood banks to preserve cord blood and stem cells are exempt from GST. These services are part of healthcare and fall under the exemption category.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
.webp)
.svg)
