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.
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