16 Jan 2021

GST on Healthcare Services

Finance feed by:

CA Urvi Gandhi
B.com,CA
CA in Practice    •    100% (1 votes)   •    9 Year 10 Month  experience

"Health care services by a clinical establishment, an authorised medical practitioner or para-medics are exempt from GST"

Let us understand the meaning of each term

WHAT IS HEALTHCARE SERVICE?
Any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy and does not include hair transplant, cosmetic or plastic surgery except undertaken to restore/reconstruct anatomy or functions of body

WHAT DOES CLINICAL ESTABLISHMENT INCLUDES?
Hospital, Nursing home, clinic, sanatorium or any institute that offers services requiring diagnosis or treatment or care for illness including investigative/diagnostic services provided by Pathology Labs

WHO IS AUTHORISED MEDICAL PRACTITIONER?
Medical practitioner registered with any council recognised by law in India and includes medical professional having qualification to practice in India as per any law for the time being in force

WHO ARE PARAMEDICS
They are trained health care professionals like nursing staff, technicians, lab assistants, etc"

OTHER SERVICES
Following are being considered as healthcare service and are exempted from GST

1. Rent of rooms provided to patients
2. Services provided by senior doctors/consultants/technicians
3. Amount charged by hospitals from patients
4. Food supplied only to admitted patients
5. Ambulance services

Conclusion: "Supply of services other than healthcare services such as renting of shops, auditoriums in the premises of clinical establishment, selling of medicines, display of advertisement, etc will be subjected to GST"

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