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GST Rate for Medical, Hospital and Doctor Services


GST Rate for Medical, Hospital and Doctor Services

The GST Council implemented the GST Rate for goods and services to create a uniform tax rate across the country. After implementing the GST, the Council linked all the services to the Services Accounting Code (SAC Code) to classify the services. The service tax department shall use the SAC Codes to levy a tax on the services availed. GST on goods, on the other hand, is levied based on HSN code, an internationally adopted classification methodology for goods in the course of import and export. GST rate for services fall under 0%, 5%, 12%, 18% or 28% slab. In this article, we look at the GST rate for medical services, GST on hospital and doctors in detail.

No Late Fee for GSTR-1 & GSTR-3B Return

The biggest relief extended to small business by the 31st GST Council is the waiver of late fee for filing GSTR-1 and GSTR-3B return. The GST Council has announced:

“Late fee shall be completely waived for all taxpayers in case of FORM GSTR-1, Form GSTR-3B &FORM GSTR-4 for the months/quarters July 2017 to September 2018, are furnished after 22.12.2018 but on or before 31.03.2019.”

Thus, filing of Form GSTR-1, GSTR-3B and GSTR-4 will not attract any late fee penalty until 31st March 2019.

GST Annual Return Due Date Extended

All entities having GST registration are required to file GST annual return in form GSTR-9. The due date for filing GST annual return is usually 31st December of each year for the financial year ended on 31st March of the same calendar year. As GST is newly introduced in India, the Government has decided to extend the due date for GST annual return filing to 30th June 2019. The due date for filing GST annual return was originally extended upto 31st March 2019, which has been further extended to 30th June 2019 by the GST Council.

SAC Code for Hospital, Doctor and Medical Services

SAC code for hospital, doctor and medical services fall under two categories of the SAC headings. Majority of the hospital and doctor services fall under human health and social care services. On the other hand, veterinary services fall under other professionals, technical and business services.

Know more about GST rate for medicines.

Human Health Services

The SAC code for human health services for GST is as under:

SAC code 999311 – Inpatient services.

SAC code 999312 – Medical and dental services.

SAC code 999313 – Childbirth and related services.

SAC code 999314 – Nursing and Physiotherapeutic services.

SAC code 999315 – Ambulance services.

SAC code 999316 – Medical Laboratory and Diagnostic-imaging services.

SAC code 999317 – Blood, sperm and organ bank services.

SAC code 999319 – Other human health services including homoeopathy, Unani, Ayurveda, naturopathy, acupuncture etc.

To know more about GST rate for medical equipment, click here.

Residential Care Services for the Elderly and Disabled

SAC code 999321 – Residential health-care services other than by hospitals.

SAC code 999322 – Residential care services for the elderly and persons with disabilities.

Other Social Services with Accommodation

SAC code 999331 – Residential care services for children suffering from mental retardation, mental health illnesses or substance abuse.

SAC code 999332 – Other social services with accommodation for children.

SAC code 999333 – Residential care services for adults suffering from mental retardation, mental health illnesses or substance abuse.

SAC code 999334 – Other social services with accommodation for adults.

Social Services without Accommodation for the Elderly and Disabled

SAC code 999341 – Vocational rehabilitation services.

SAC code 999349 – Other social services without accommodation for the elderly and disabled.

Other Social Services without Accommodation

SAC code 999351 – Child day-care services.

SAC code 999352 – Guidance and counselling services n.e.c. Related to children.

SAC code 999353 – Welfare services without accommodation.

SAC code 999359 – Other social services without accommodation.

GST Rate for Medical, Hospital, Doctor and Social Services

Majority of the medical, hospital and doctor services are exempt from GST.

Health care services by a clinical establishment, an authorised medical practitioner or para-medics is exempt from GST. Services by a veterinary clinic in relation to health care of animals or birds are also exempt from GST.

Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation is exempt from GST.

Also, services provided by way of transportation of a patient in an ambulance is exempt from GST.

The GST rate for services has a catch-all clause which mentions that if a service is not exempt from GST explicitly or the GST rate for the service is not provided for explicitly, then an 18% GST rate would be applicable. Hence, some of the above services not rendered by a clinical establishment or an authorised medical practitioner or a para-medics could be subject to GST.

In case a person supplying services is taxable under GST, then GST registration must be obtained, and GST returns must be filed. Know more about GST compliance at the IndiaFilings GST Portal.