Exempt Healthcare Services
- GST exempts healthcare services provided by a clinical establishment, authorized medical practitioner, or paramedics
- Includes diagnosis, treatment, or care for illness, injury, or pregnancy
- Services provided by hospitals, clinics, nursing homes, and similar establishments are covered
- Includes ambulance services and inpatient care
- Preventive health services and immunization are also exempt
Taxable Medical Supplies
- Sale of medicines, medical devices, and health supplements attracts GST
- Hospital room rent above ₹5000 per day (excluding ICU) may be taxable at 5%
- Cosmetic and elective surgeries not medically necessary are taxable
- Medical insurance services attract GST at 18%
- Ancillary services by third-party contractors (e.g., housekeeping) are taxable
Registration and Invoicing
- Exempt establishments need not register under GST unless supplying taxable items
- If providing both taxable and exempt services, registration becomes mandatory
- Must issue bill of supply for exempt services and tax invoice for taxable goods
- Proper record segregation needed between taxable and exempt income
- Input tax credit not available for inputs used in exempt medical services
Supplies to Medical Institutions
- Services like housekeeping, canteen, diagnostics by external labs are taxable
- Medical equipment supplied to hospitals attracts GST between 5% and 18%
- Institutions can claim input tax credit only on taxable services or goods
- GST charged on outsourced staff, software, and maintenance contracts
- Suppliers must comply with e-invoicing and return filing if thresholds are met
Compliance and Sector Impact
- GST increased transparency in procurement and billing
- Encouraged hospitals to automate billing and compliance systems
- Cost implications depend on the ratio of exempt to taxable services
- Refund or input credit options limited to taxable operations
Sector demands continuous updates on GST changes and exemptions
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