I had recently replied to a similar question [GST on hospitals and doctors]. As mentioned therein, health care services by hospitals and doctors are exempt from the GST.
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”. For medicines as goods, GST is applicable generally at the rate of 5%.
Your question is with regard to consumables used in treatment in hospital. Generally speaking, treatment within a hospital would involve “services”. If such consumables are used for providing the “services” of treatment to a patient in a hospital, such as, for example, consumables used during a surgery or during a medical test (such as CT-scan), they would be exempt from the GST.
However, if certain consumables are separately sold to a patient and billed separately (such as medicines), they may be covered under GST if there is any GST chargeable on those consumables as “goods”.
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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