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IMPACT OF GST ON HEALTH CARE SECTOR

GST Implication on Health care Sector
Medical sector has various sectors which is covered by GST under different sector and thus following are to be covered.
1.       Services for OPD
2.       Services for IPD (Bundled Services)
3.       Medical shops
4.       Renting
5.       Medical consultancies
6.       Bio-waste treatment
7.       Various medical tests
8.       Blood bank services
9.       Beauty treatment
10.   Veterinary doctor
Coverage of medical practitioners
ü  Acupressure
ü  Balneotheraphy
ü  Reiki
ü  Acupuncture
ü  Naturopathy
ü  Reflexology
ü  Aromatherapy
ü  Chiropractic
ü  Biofeedback
ü  Ayurvedic medicine
ü  Homeopathy
ü  Allopathy
Exemption entry for medical professional
Entry no. 82 of Exemption list of services from GST states that
        I.            Health care services by a clinical establishment authorized medical practitioner or Para-medics.
      II.            Services provided by way of transportation of a patient in an ambulance, other than those specified above.
Are exempt from GST.


Thus to understand which services are exempt from GST. Explanation for the following terms from the above exemption in the exemption list.
Ø  Health care services
Ø  Clinical establishment
Ø  Authorized medical practitioner.
a)      Health care services means any services by way of diagnosis or treatment or care for illness injury ,deformity , abnormality or pregnancy in an any recognized system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment but does not include hair transplant or cosmetic or plastic surgery except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects development abnormality, injury or trauma .                                                                           for example :- 
v  Services of diagnosis/treatment/cure
v  Ambulance services.
v  Hair transplant/cosmetics/plastic surgery (where mandatory according to doctor)
b)      Clinical establishment means a hospital, nursing  homes ,clinic, sanatorium or any other services or facility requiring diagnosis or treatment or care for illness, injury ,deformity , abnormality or pregnancy in a recognized system of medicines in India or a place establishment as an independent entity or a part of an establishment to carry out diagnostic or investigative  services.
For example:-
v  Hospital
v  Nourishing homes
v  Clinic
v  Sanatorium homes
v  Testing labs. Etc
c)       Authorized medical practitioner means medical practitioner registered with any of the councils of the recognized system of medicines established or recognized by law in India. And includes a medical professional having the requisite qualification to practice in any recognized system of medicines in India per any law for the time being in force.
v  Medical practitioner (doctor) having medical authorized degree
v  Para-medical (nursing staff /supporting staff)
Services for cure
No GST
Services for care
GST  will be levied.




Services by the medical practitioners:-
Ø  Services for OPD
OPD means an outpatient department of a hospital .it is the section of the hospital where are provided medical consultants and other allied services.

GST implication on OPD

AS PER ENTRY NO. 82: EXEMPTION LIST OF SERVICES
Health care services by a clinical establishment an authorized medical practitioner or para-medical.
 Thus the medical professionals giving only OPD SERVICES will not be covered under GST
and they don’t have to thus collect from patients or pay GST to Government.
All the medical OPD for ear treatment, eyes treatment, dental clinic, nose treatment
or treatment of other parts of body are all exempt under the same Entry given below.


Ø  SERVICES FOR IPD
Services like Room renting, food supply ,maternity services ,laundry for hospital cloth, pharmacy, nursing , various testing like blood test etc.
Entry No: 82 of Exemption List:
                                  i.            Health care services by a clinical establishment, an authorized medical practitioner or Para-medics;
                                ii.            Services provided by way of transportation of a patient in an ambulance, other than those specified in above.
Thus the services specified above or any other services by clinical establishment or an authorized medical practitioner shall be Exempt. Thus NO GST is levied on such services except given on following.

Ø  GST on Medical Shops
This retailer doesn’t have any excisable invoice or VAT invoice with them but tax such as excise and VAT are already paid. Now in the GST Regime, retailers are also entrusted to collected tax from the ultimate customers and take credit of the stock in hand they have on some method prescribed.

Ø  GST ON RENTING
Renting includes the services of giving on rent the following premises for the different purposes which is not Exempt at any point in GST :-
v  Medical Shops on rent in Hospital Premises.
v  Medical Shop son Rent at any other premises.
v  Hospital On rent at any premises.
v  Medical Tests Centre on Rent in Hospital or at any other premises.
v  Etc.
GST will be levied on renting services as such service of renting is not covered at any entry in the “Exemption of services from GST” list. Thus as per residual Entry No: 36, GST will be levied @18% on renting services.
Ø  GST ON MEDICAL CONSULTANCY
Medical Consultancy here by refers to the consultancy by authorized medical practitioners for the different purposes which do/don’t involve the treatment for the same. The purposes for which Medical Consultancy can be given are as follows:-
v  Dietitians
v  Health-Care Consultants
v  Weight-Loose Consultants, etc.
NO GST will be levied on such Medical Consultancy services as defined above because such services are covered in Entry No: 82. But such consultancy must be given for the purpose of CURE & not for the purpose of CARE.

Note: The Medical Consultants here by doesn’t include the Consultants or the Treatment for the Beauty Treatment or Gym Centers run by the Authorized Medical Practitioners as they are covered in separate below.


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