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17 Dec 2018Posted By: Mudit Handa

How much GST on medical sector?

Evidently, one can notice the positive impacts of GST in all the spheres of our economy.  Besides the ease of doing business, GST regime has also optimized the scenario of public services. In this context, we must forget the positive impact of GST registration on the medical sector. The medical sector has witnessed noteworthy reforms after the introduction of GST.

Everyone knows that several indirect taxes were subsumed and one GST tax was imposed. In some areas including healthcare, relief has been provided to the taxpayers by way of exemptions. The main idea behind such exemptions that common people could get basic amenities without the extra tax burden.

This article will throw light on various aspects of the medical sector and the impact of GST on them.


#1. How does GST apply in  the  medical  sector?

The medical/healthcare sector has been divided into the following categories as mentioned below:

  • Outdoor Patient Department (OPD) Services
  • Indoor Patient Department (IPD) Services,
  • Blood Bank,
  • Diagnosis/Pathology Test Services,
  • Dispensary/Pharmacy Stores,
  • Bio-Medical Waste Management
  • Professional Consultation Services
  • Veterinary Service


#2. How does GST apply on OPD Services?

The services of the Outdoor Patient Department or OPD are principally those services that are being offered to the patients who came to the clinical centre for taking consultation services for the treatment of their disease. When such services are provided by a clinic having GST registration for treatment of the patient, they will be exempted from GST.



#3. How does GST apply on IPD Services?

The services of Indoor Patient Department or IPD are basically those services that are being given to the patients who are admitted at the clinical centre for the purpose of treatment. This also includes bundled services.  All types of IPD service for the purpose of treatment of the patient will be exempted from GST.


#4. What is the provision of GST on Blood Bank Services?

As per the rule, services given by cord blood banks in respect of the preservation of stem cells or any other related services provided by Blood Bank for the preservation of stem cells are exempted from GST.


#5. What is the provision of GST on Pathology Services?

Notably, the diagnostic or pathological tests are conducted for diagnosis or tracing of the actual cause of a disease. Mostly, such tests are necessary where the root cause of the disease doesn’t get traced from the primary check-up of patients.

Thus, the GST authority has exempted Pathology Services from GST.


#6. How does GST apply  on  Pharmacy Stores?

The pharmacy stores having a GST registration are taxable under the GST, irrespective of whether they’re located in or out of the clinic. Only if such services are offered as bundled services of IPD, such services will be exempted from GST.


#7. How does GST apply  on  Waste treatment?

Bio-Medical Waste or more commonly the medical waste is defined as solid waste generated while diagnosis, treatment, research or making biological products for humans or animals. This may include syringes, vaccines, samples, organs, bio-fluids and other such waste. Such waste is really harmful to the public health and the safe and timely disposal of such waste is essential. Thus, these services are exempted from GST.


#8. How does GST apply  on  Professional Consultation?

In case any medical advice is being offered for the purpose of treatment of the patient and is essential as per doctor’s prescription, it will be exempted from GST.


#9. What is the provision of GST on Veterinary Service?

Veterinary science deals with the treatment of animals & birds. All such services will be exempted from GST.

Also read the  and exemption of Medical services from GST.


If you need any help regarding GST registration, feel free to contact our business advisor at 8881-069-069.

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Posted By Dinesh bhalgama
Posted Date 2018-12-17 22:32:56


Posted By Mudit Handa
Posted Date 2018-12-19 10:55:56

Hello sir, How can we help you?

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