GST on Healthcare Services — Hospitals, Medicines, Equipment (2026)
Healthcare services provided by hospitals, clinics, and doctors are fully exempt from GST. However, medicines, medical devices, and equipment attract GST at varying rates (5–18%). Hospitals cannot claim ITC on their inputs because their output (patient services) is exempt.
Quick Reference
Hospital Services
0% (Exempt)
Medicines
5% (most formulations)
Medical Devices
5%–12%
Ambulance
0% (Exempt)
Non-ICU Room >₹5,000/day
5%
GST Rate
0% / 5% / 12%
SAC 9993 / HSN 3004
Hospital & Clinical Services — Exempt
Services provided by clinical establishments (hospitals, nursing homes, dispensaries), authorised medical practitioners, and paramedics are fully exempt from GST. This includes consultation fees, in-patient charges, OT charges, and ICU charges.
Medicines — 5% / 12%
Most medicines and formulations attract 5% GST (HSN 3004). Life-saving drugs may attract 0% or 5%. Ayurvedic, Unani, Siddha medicines — 12%. Herbal healthcare products — 12%. COVID-19 drugs were reduced to 5% via special notifications.
Room Rent in Hospitals — Partially Taxable (post-July 2022)
ICU, ICCU, and NICU are still exempt. Non-ICU hospital rooms with daily charges exceeding ₹5,000 per day attract 5% GST (without ITC). This was a controversial change introduced in July 2022.
🧮 Check ITC eligibility for medical expenses
Free calculator — instant results, no signup required.
No. Hospital services are exempt from GST. However, if the room rent exceeds ₹5,000/day (non-ICU), 5% GST applies on that room component. Medicines supplied in-house are at applicable medicine rates.
Generally no — because hospitals primarily provide exempt services. If a hospital also provides some taxable services (like cosmetic surgeries, which are taxable), partial ITC can be claimed proportionally.
Yes. Diagnostic services (blood tests, X-rays, MRI scans) provided by clinical establishments are exempt from GST.
Cosmetic treatments and plastic surgery for aesthetic purposes (not medically necessitated) attract 18% GST. Procedures for medical necessity remain exempt.
