As per the schedule of GST rates for services as approved by GST council on 19 May 2017, following items are provided under Sr. No. 82 of the heading of “Service Tax Exemptions to be continued in GST as decided by GST Council”:
(i) Health care services by a clinical establishment, an authorised medical practitioner or para-medics;
(ii) Services provided by way of transportation of a patient in an ambulance, other than those specified in (i) above;
In view of this, it is clear that health care services by hospitals and doctors are exempt from the GST. Please mark the word “services”.
But, if a doctor or hospital is also providing medicines to the patients, then such medicines would not be covered within the word “services” but would rather be covered under “goods”. Now, for medicines as goods, GST is applicable generally at the rate of 5%. Therefore, I am of the opinion that GST may be applicable on such medicines which are supplied by a doctor or a hospital to their patients, if the gross value of such supplies is above the exempted threshold value.
As regards various types of medical tests (such as pathological tests) which are conducted in the hospital or by a doctor, they are also in the form of “services” and not “goods”. There is no separate category shown for such medical tests. Therefore, they can be included within the above health care services provided by doctors and hospitals under Sr. No. 82, which is exempted from GST. Therefore, I think there would be no GST on such medical tests conducted by doctors and hospitals.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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