The following services related to healthcare are exempted from GST regime :
- Healthcare services by a clinical establishment, an authorised medical practitioner or para-medics.
- Services provided by way of transportation of a patient in an ambulance, other than those specified in (i) above
Hospital is a clinical establishment providing healthcare services to society. So it is exempt from GST.
As per GST regime, any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act are not liable for registration.
Since healthcare service is exempt from GST as mentioned above, the hospitals/nursing homes, etc are not liable to take registration under GST regime.
ITC will not be available on goods or services exclusively used for:
- Non-business activity
- Exempt supplies
- Supplies w.r.t. which ITC is not available