GST on Health Care Services — Explained

India's health care business is quickly expanding and is one of the fastest growing sectors of the Indian economy.

The reasons for the rise of the health care sector include an increasing population, increased concerns caused by lifestyle, health awareness, health tourism, and so on. As a result, healthcare costs are soaring.

The effect of GST on overall medical expenditures is also a significant aspect in deciding affordability for the Indian populace.

This document covers

Meaning of Health care services
Meaning of Clinical Establishment
Applicability of GST on various Health care services

1. Meaning of Health care services

Healthcare services mean "Diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India" and it also includes "transportation services of the patient" to and from a clinical establishment

Exception: Healthcare services do not include hair transplantation or cosmetic or plastic surgery unless it is done with an intention to restore or reconstruct anatomy or body functions affected due to congenital defects, injury, trauma or developmental abnormalities.

NOTE:

Recognized system of medicines in India is Allopathy, Yoga, Naturopathy, Ayurveda, Homeopathy, Siddha, Unani or any other recognized by central Government.

Reiki, Japanese healing treatment is not a recognized system of medicine.

2. Meaning of Clinical Establishment

Clinical establishment means hospital, nursing home, clinic or any other institution which offers services requiring diagnosis, treatment etc. Clinical establishment also includes diagnostic centers also.

3. Applicability of GST on various Health care services

S.No	Type of Services	Meaning	Applicability of GST
1	Outpatient Department Services (OPD)	Consultation and treatment of patients without admitting them in hospital. These services include doctor consultation, minor procedures etc	0% (Exempted from GST)
2	Inpatient Department Services (IPD)	Consultation and treatment of patients by admitting them in hospital for at least 1 night or more. These services include admission, room rent, doctor visits, surgery, medicines etc	0% (Exempted from GST)
3	Room Rent	Rent for the Non-ICU or ICU rooms if booked separately from the package	0% for ICU Rooms 0% for non-ICU rooms if rent is <= Rs 5000 5% for non-ICU rooms if rent is > Rs 5000 (GST is exempted if room is booked as part of package irrespective of rent
4	Supply of Food	It is the food supplied to patients or attendants in hospitals	0% for food supplied to admitted patients 5% or 18% for Non admitted patients or attendants
5	Ambulance Services	Ambulances services for transportation of patients in emergency or Non- emergency situations	0% (Exempted from GST)
6	Diagnostic Services	It means services like blood test, urine test, X-ray, ultrasound, CT scan and other pathology and radiology examinations	0% (Exempted from GST)
7	Services provided by Veterinary Doctors	Health care services provided in relation to health of animals and birds	0% (Exempted from GST)
8	Services Provided by Physiotherapists	Health care services provided to help the patients to restore mobility, reduce pain etc	0% (Exempted from GST)
9	Beauty Treatment Services or Plastic Surgeries	These services are provided mostly for care purpose. These does not come under Health care services	18% GST
10	Dental Treatments	These treatments can be provided in relation to teeth. Some of the services will be provided for medical reasons and some treatments will be in cosmetic nature	0% GST for Medical treatments like root canal, dental fillings, infections, crowns etc 18% for cosmetic surgeries like teeth whitening, smile designing etc
11	Health Insurance	Health insurance is a protection plan in which it helps the person in protecting against medical and hospitalization expenses	0% (Exempted from GST w.e.f 22nd September 2025. Earlier it was 18%)