31 Oct 2019Posted By: Mudit Handa

GST on Medical equipment & Clinical Devices

It can’t be negated that Healthcare is one of the most significant concerns of an average Indian. In fact, it is a significant area of spending of an average Indian household. On seeing today’s era of hectic work schedules, rising levels of pollution, rampant adulteration and resultantly deteriorating public health at large, planning the health budget is a must for everyone. This is the reason why healthcare is engulfing a sizable share of our income. Now, question is- what decides the cost of healthcare services? There are so many factors, out of which the cost of medical devices used in pathology is a prime factor. It’s thus very essential to be aware of the GST rules applicable to the suppliers of clinical apparatus, who have GST registration.


Scope of healthcare services in India

As we discussed above, Healthcare is a prime concern of many Indians. Thus, it has a majority share in India’s economy as well. In view of that, the industry for clinical apparatus is estimated to possibly expand at the rate of 28% p.a.

  • This would soon reach US$ 50 billion by the year 2025.
  • There are currently 750–800 indigenous manufacturers of medical equipment in India. These indigenous players make an aggregate turnover of about US$ 6.2–6.9 million. Roughly 65% of these are for the most part operating in the consumer durables section.
  • The government has now and again, rationalized the GST rates applicable to the medical equipment manufacturers having GST registration. This has been done to make reliable medical services available to the patients at very reasonable costs.

1. Applicable GST Rates for the Clinical Equipment

GST on the supplies of Clinical devices and apparatus are levied under 5 distinct tariffs. These are discussed below:

  • 0%,
  • 5%,
  • 12%,
  • 18%
  • 28%.

In point of fact, the only medical devices that attract GST @ 0% are the portable amplifiers. All other medical devices fall under HSN chapter 90. Accordingly, all those Clinical devices and apparatus attract higher GST tariffs.

2. Medical Equipment with GST @ 5%:

The following medical devices attract 5% GST:        

  1. Coronary stents and coronary stent frameworks used with cardiovascular catheters in angioplasty  
  2. Artificial kidney
  3. Dispensable and sterilized dialyzer
  4. Props
  5. Wheeled chair, both conventional and motorized
  6. Walkers
  7. Tricycles
  8. Braille script readers
  9. False appendages
  10. Helping devices, specialized devices for the differently-abled citizens

The suppliers of such healthcare devices having GST registration shall take into account the aforesaid GST rate.

3. Medical Equipment with GST @ 12%

The following medical devices attract 12% GST:

  1. Blood glucose monitoring device called Glucometer along with the test strips
  2. Apparatus and equipment employed in medical, dental care or veterinary services,
  3. Other electro-medical devices
  4. Eyesight testing device
  5. Mechanical treatment machines;
  6. Cerebral curve testing device;
  7. ozone treatment apparatus,
  8. oxygen pump,
  9. vaporized treatment,
  10. Other types of breathing equipment and gas masks
  11. Orthopedic devices such as knee braces, sauna belts
  12. Artificial limbs;
  13. Amplifiers
  14. Other forms of different apparatuses which are worn or conveyed, on the body, in case of a disability  
  15. Devices using the X-rays or alpha, beta or gamma radiations, for medical, or veterinary uses. This also includes radiography X-ray tubes and other X-ray generators (high-pressure generators), control sheets and work areas, screens, assessments or treatment tables, seats along with the lamp.

The said GST rate shall be applicable to all the manufacturers of such gear, who have GST registration.

4. GST on eyewear:

The eyewear attracts different GST rates as given below:

  • The focal lenses, contact focal lenses, eye lenses, and contact focal lenses are taxed @ 12% GST rate.
  • Casings and covers for the eye lenses, goggles or similar eyewear, along with their auxiliary parts attract 18% GST. This also consists of restorative, protective and remedial goggles.
  • Fashionable Goggles (except for the remedial ones) attract 28% GST.
  • The vendors of the eyewear having GST registration are supposed to follow the above-listed GST rates on the eyewear.

To sum up, we must say that these rationalized GST rates on Medical Equipments & medical devices have a key role in ensuring that affordable and precise medical devices are accessible to all the patients who urgently require them. 

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