GST Rate for Medical, Hospital and Doctor Services
Idea for sharing this article is to help healthcare professional to understand the Impact of GST on hospital and Pharma shop . and this will help them in GST filling . we back at hospaccx help you in out sourcing day to day accounting for your healthcare business . if any query please write to us on firstname.lastname@example.org
GST rate for goods and services is decided by the GST Council in India based on SAC code. SAC code or Services Accounting Code is a classification methodology created by the service tax department for classifying services for the purposes of levy of service tax. GST on goods on the other hand is levied based on HSN code, an internationally adopted classification methodology for goods in the course of import and export. GST rate for services fall under 0%, 5%, 12%, 18% or 28% slab.
In this article, we look at the GST rate for medical services, hospitals and doctors in detail.
SAC Code for Hospital, Doctor and Medical Services
SAC code for hospital, doctor and medical services fall under two categories of the SAC headings. Majority of the hospital and doctor services fall under human health and social care services. On the other hand, veterinary services fall under other professional, technical and business services.
Human Health Services
The SAC code for human health services for GST is as under:
SAC code 999311 – Inpatient services.
SAC code 999312 – Medical and dental services.
SAC code 999313 – Childbirth and related services.
SAC code 999314 – Nursing and Physiotherapeutic services.
SAC code 999315 – Ambulance services.
SAC code 999316 – Medical Laboratory and Diagnostic-imaging services.
SAC code 999317 – Blood, sperm and organ bank services.
SAC code 999319 – Other human health services including homeopathy, unani, ayurveda, naturopathy, acupuncture etc.
Residential Care Services for the Elderly and Disabled
SAC code 999321 – Residential health-care services other than by hospitals.
SAC code 999322 – Residential care services for the elderly and persons with disabilities.
Other Social Services with Accommodation
SAC code 999331 – Residential care services for children suffering from mental retardation, mental health illnesses or substance abuse.
SAC code 999332 – Other social services with accommodation for children.
SAC code 999333 – Residential care services for adults suffering from mental retardation, mental health illnesses or substance abuse.
SAC code 999334 – Other social services with accommodation for adults.
Social Services without Accommodation for the Elderly and Disabled
SAC code 99934 – Vocational rehabilitation services.
SAC code 999349 – Other social services without accommodation for the elderly and disabled.
Other Social Services without Accommodation
SAC code 999351 – Child day-care services.
SAC code 999352 – Guidance and counseling services n.e.c. related to children.
SAC code 999353 – Welfare services without accommodation.
SAC code 999359 – Other social services without accommodation.
GST Rate for Medical, Hospital, Doctor and Social Services
Majority of the medical, hospital and doctor services are exempt from GST.
Health care services by a clinical establishment, an authorised medical practitioner or para-medics is exempt from GST. Services by a veterinary clinic in relation to health care of animals or birds is also exempt from GST.
Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation is exempt from GST.
Also, services provided by way of transportation of a patient in an ambulance is exempt from GST.
The GST rate for the service has a catch-all clause which mentions that if a service is not exempt from GST explicitly or the GST rate for the service is not provided for explicitly, then a 18% GST rate would be a applicable. Hence, some of the above services not rendered by a clinical establishment or an authorised medical practitioner or a para-medics could be subject to GST.
GST Rate for Medicines
The GST Rates for medicines were decided by the GST COUNCIL in the meeting held on 3rd June, 2017. GST is levied under 5 different rates, namely NIL, 5%, 12%, 18% and 28% based on the HSN Code of the item. Medicines and pharmaceuticals are classified under 37th chapter of the HSN Code. In this article, we look at the GST rate for medicines and the associated HSN code.
NIL GST Rate Medicines
The following types of medicines and pharmaceutical products are exempt from GST:
• Human Blood and its components
• All types of contraceptives
5% GST Rate
Goods under the following HSN categories are taxed at 5% GST rate:
• Animal or Human Blood Vaccines
• Diagnostic kits for detection of all types of hepatitis
• Desferrioxamine injection or deferiprone
• Medicaments (including veterinary medicaments) used in bio-chemic systems and not bearing a brand name
• Oral re-hydration salts
• Drugs or medicines including their salts and esters and diagnostic test kits
• Formulations manufactured from the bulk drugs
12% GST Rate
• Organs for organo-therapeutic uses, dried, whether or not powdered; extracts of glands or other organs or of their secretions for organo-therapeutic uses; heparin and its salts; other human or animal substances prepared for therapeutic or prophylactic uses, not elsewhere specified or included
• Animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera and other blood fractions and modified immunological products, whether or not obtained by means of biotechnological processes; toxins, cultures of microorganisms (excluding yeasts) and similar products.
• Medicaments consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale, including Ayurvaedic, Unani, Siddha, homoeopathic or Bio-chemic systems medicaments.
• Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packings for retail sale, including Ayurvaedic, Unani, homoeopathic siddha or Biochemic systems medicaments, put up for retail sale.
• Wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes.
• Pharmaceutical goods such as Sterile surgical catgut, similar sterile suture materials (including sterile absorbable surgical or dental yarns) and sterile tissue adhesives for surgical wound closure; sterile laminaria and sterile laminaria tents; sterile absorbable surgical or dental haemostatics; sterile surgical or denatal adhesion barriers, whether or not absorbable, etc.,
• Waste pharmaceuticals
18% GST Rate
Nicotine polacrilex gum is the only medicine or pharmaceutical product taxed at 18% GST rate. No pharmaceutical or medicines have been taxed at 28% GST. Hence, the highest applicable GST rate for medicines is 18%.
Idea for sharing this article is to help healthcare professional to understand the Impact of GST on hospital billing . and this will help them in GST filling . we back at hospaccx help you in out sourcing day to day accounting for your healthcare business . if any query please write to us on email@example.com