स्वस्थ नागरिक ही, किसी राष्ट्र की सबसे बड़ी पूंजी है
Health Care Sector is on the highest priority for the government and a significant portion of the government spending goes to provide low cost health care facility to the public at large. Having regard to the importance of Medical Facilities and the noble cause delivered by the doctors and other medical practitioners, majority of the health care services have been kept as exempted under GST. However, there are several activities within the health care segment, which are not covered within the exemption provided under the GST law, and it is important for the doctors, clinical establishments and other persons working in the health care sector to know and comply with the GST law wherever it is applicable.
This article Covers:-
- Exemption given to Health Care Service under GST;
- Illustrative list of Services that are exempted under GST and supplies that are liable for tax under GST;
- Rate of GST on various Taxable Supplies.
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PART 1 : GST Exemption on Health Care Services : Government has exempted Health Care Service vide Entry No. 77 of Notification no 09/2017 –Integrated Tax (Rate) date 28-06-2017 reproduced below:-
| Sl No. | Service Code | Descriptions Of Service | Rate | Condition |
| 77 | Heading 9993 | Services by way of
(a) health 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. |
NIL | NIL |
DEFINITIONs:-
1) “health care services” means any service by way of
– diagnosis or treatment or care for [INCLUSIONS]
> 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 [EXCLUSIONS]
> 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;
2) “clinical establishment” means
– 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;
3) “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;
What is covered under the Recognised Systems of Medicines?
As per section 2 (h) of the Clinical Establishment Act, 2010 following systems of medicines are recognised system of medicines:-
> Allopathy
> Yoga
> Naturopathy
> Ayurveda
> Homoeopathy
> Siddha
> Unani
> Any other system of medicine that may be recognised by Central
Government.
4) Para Medics have not been defined under this notification. However, they are trained medical professionals, for example nursing staff, physiotherapists, technicians, lab assistants etc. These persons are normally employees of diagnostic centre, nursing home, hospital or similar institutions. The services provided by them as employees will not be taxable. However, if they are working in independent capacity, the service provided by them will also not be liable to be taxed under GST as the same are exempt under this notification.
PART 2 : Illustrative List of Services that are Exempted and Supplies that are Taxable related to Health Care Sector
A) EXEMPTED SUPPLIES:-
i) Consultation Charges;
ii) Bed, Room, ICU, Neonatal ICU, Day Care Charges;
iii) Operation, Procedures & Nursing Care Charges;
iv) Laboratory and Medical Test Charges;
v) Ambulance Service;
vi) Blood Bank Services [09/2017 – Entry No. 76];
vii) Bio Medical Waste Disposal Service [09/2017 – Entry No. 78]; etc
B) TAXABLE SUPPLIES:-
i) Sale of Medicines;
ii) Sale of Implants and artificial Limbs;
iii) Renting of Space for Medical Shop, Canteen or Parking Facility;
iv) Commission received;
PART 3 : Rate of GST on Taxable Supplies
| Sl. No. | Chapter/ HSN/SAC Code | Description | Rate Of GST |
| 1 | 30 | Drugs or medicines including their salts and esters and diagnostic test kits, specified in List 1 appended to this Schedule | 5% |
| 2 | 90 | Coronary stents and coronary stent systems for use with cardiac catheters | 5% |
| 3 | 90 or any other chapter | Artificial kidney
|
5% |
| 4 | 90 or 84 | Disposable sterilized dialyzer or micro barrier of artificial kidney | 5% |
| 5 | 9804 | Drugs or medicines including their salts and esters and diagnostic test kits specified at S.No.180 above and Formulations specified at S.No.181 above, intended for personal use. | 5% |
| 6 | 3005 | Wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes | 12% |
| 7 | 3006 | Pharmaceutical goods specified in Note 4 to this Chapter [i.e. Sterile surgical catgut, similar sterile suture materials (including sterile absorbable surgical or dental yarns) and sterile tissue adhesives for surgical wound closure; sterile laminaria and sterile laminaria tents; sterile absorbable surgical or dental haemostatics; sterile surgical or denatal adhesion barriers, whether or not absorbable; Waste pharmaceuticals] [other than contraceptives] | 12% |
| 8 | 9018 | Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments | 12% |
| 9 | 9019 | Mechano-therapy appliances; massage apparatus; psychological aptitude-testing apparatus; ozone therapy, oxygen therapy, aerosol therapy, Artificial respiration or other therapeutic respiration apparatus | 12% |
| 10 | 9021 | Splints and other fracture appliances; Artificial parts of the body; other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability; intraocular lens [other than orthopaedic appliances, such as crutches, surgical belts, and trusses, hearing aids] | 12% |
| 11 | 9804 | Other Drugs and medicines intended for personal use | 12% |
| 12 | 8419/ 20 | Medical, surgical or laboratory sterilisers | 18% |
| 13 | 9022 | apparatus based on the use of X-rays or of alpha, beta or gamma radiations, for medical, surgical, dental or veterinary uses, including radiography or radiotherapy apparatus, X-ray tubes and other X-ray generators, high tension generators, control panels and desks, screens, examinations or treatment tables, chairs and the light | 18% |
| 14 | 9402 | Medical, surgical, dental or veterinary furniture (for example, operating tables, examination tables, hospital beds with mechanical fittings, dentists’ chairs); barbers’ chairs and similar chairs, having rotating as well as both reclining and elevating movements; parts of the foregoing articles | 18% |