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GST on Health Care services

Health Care means the maintenance and improvement of physical and mental health, especially through the provision of medical services.

 

Health Care services include diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India and services by way of transportation of the patient to and from a clinical  establishment. It does not include hair transplant, cosmetic, 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.

Health care Services provided by following are exempt from GST:

1. Clinical Establishment,

2. Authorized Medical Practitioner and

3. Paramedics

 

A more detailed discussion is presented below:-

Clinical establishment

Clinical Establishments includes hospital, nursing home, clinic, sanatorium or any other institution that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines. It also includes any place established as an independent entity or part of an establishment in connection with the diagnosis or treatment of diseases where pathological, bacteriological, genetic, radio logical, chemical, biological investigations or other diagnostic or Investigative services with the aid of laboratory or other medical equipment, are usually carried on.

But does not include the clinical establishments owned, controlled or managed by the Armed Forces.

Authorized medical professional:

Authorized medical professional means a person: -

  • registered with any medical council;
  • having requisite qualification to practice;
  • qualification should be of any system of medicine recognized in India.

Paramedics: These are trained healthcare professionals such as nursing staff, physiotherapists, technicians, lab assistants etc. They are accountable for their services when provided independently and therefore exempt.  Services by them in a clinical establishment would be in the capacity of employee and not provided in independent capacity and will thus be considered as services by such clinical establishment. Similarly, services of assisting an authorized medical professional would be considered as services by such authorized medical professional only. 

The following services provided which are linked with health care services are also exempt from GST:

  • Services provided by veterinary doctors
  • Blood Banks
  • Ambulance Services
  • Bio Medical Waste
  • Room rent for patient

Following services provided by clinical establishments as a part of composite supply to indoor patients are also exempt from GST:

  1. Sale of Medicines
  2. Food supplied as advised by the doctor/nutritionists

Conclusion

Generally, health care services are exempt from GST. But the services by plastic surgeons (when cosmetic in nature) and other medical services like implantation of artificial limb is taxable.

 

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