GST on Healthcare in India —
Exempt or Taxable?
The GST position on hospital treatment, doctor fees, room rent, cosmetic surgery, medicines and health & life insurance — updated for the GST 2.0 reforms.
Healthcare services are exempt from GST. Treatment by a clinical establishment, an authorised medical practitioner or paramedics — diagnosis, treatment, doctor consultation and ambulance — is exempt under Notification 12/2017-CT(R), entry 74. The main exceptions: hospital room rent above ₹5,000/day (non-ICU) is 5% without ITC, and cosmetic/plastic surgery (non-reconstructive) is 18%. Medicines are goods taxed at 5% or 12%. Health & life insurance became GST-exempt from 22 September 2025 under GST 2.0.
GST on Healthcare — Decision Table
The GST position for every common healthcare service, medicine and product, with ITC eligibility.
| Service / Product | GST Rate | ITC | Notes |
|---|---|---|---|
| Hospital treatment (OPD / IPD / surgery) | Exempt | — | Clinical establishment · entry 74 |
| Doctor consultation fee | Exempt | — | Authorised medical practitioner |
| Diagnostics — pathology / radiology | Exempt | — | Part of healthcare services |
| Ambulance services | Exempt | — | Patient transport |
| Dental & AYUSH treatment | Exempt | — | By authorised practitioners |
| Room rent ≤ ₹5,000/day | Exempt | — | Non-ICU |
| Room rent > ₹5,000/day (non-ICU) | 5% | No | On the room charge only |
| ICU / CCU / NICU room | Exempt | — | No ₹5,000 cap on ICU |
| Cosmetic / plastic surgery (non-reconstructive) | 18% | No | Not treatment of illness/injury |
| Health & life insurance premium | Exempt | — | Individual policies · from 22 Sep 2025 |
| Most medicines & drugs | 5% / 12% | B2B | Goods · HSN-based |
| Life-saving / specified drugs | 5% / Nil | B2B | Certain critical drugs |
| Human blood & components | Nil | — | Fully exempt goods |
Reflects the GST 2.0 structure effective 22 September 2025, including the insurance exemption. Confirm specific items on the official GST portal before invoicing.
Which Healthcare Services Are Exempt?
Under Notification 12/2017-CT(R) (entry 74), healthcare services by a clinical establishment, an authorised medical practitioner or paramedics are exempt — covering diagnosis, treatment or care for any illness, injury, deformity or abnormality, plus patient transport by ambulance.
- Hospital OPD, IPD, ICU & operation-theatre charges
- Doctor & specialist consultation fees
- Pathology, radiology & diagnostic tests
- Ambulance / patient-transport services
- Dental treatment by registered dentists
- AYUSH treatment by authorised practitioners
- Physiotherapy as part of medical treatment
- Mental-health services at clinical establishments
- Human blood, its components & blood-bank services
- Cord-blood banking & storage
The exemption is for treatment of a health condition. Cosmetic or plastic surgery done purely to enhance appearance (hair transplant, liposuction, rhinoplasty, botox for aesthetics) is taxable at 18%. Reconstructive surgery to restore function or correct an injury/congenital defect stays exempt as treatment.
Running a hospital, clinic or diagnostic centre? Get your GST exemption and taxable-service split reviewed.
Talk to a GST Expert →GST on Hospital Room Rent
Room rent charged by a hospital for a room (other than ICU/CCU/ICCU/NICU) is taxable at 5% without ITC where the charge exceeds ₹5,000 per day. Rooms at ₹5,000/day or below, and all ICU categories, remain exempt.
Exempt room categories
- Any room charged ≤ ₹5,000/day
- ICU / CCU / ICCU / NICU (no cap)
- The treatment, surgery & nursing itself
- Ambulance & diagnostics
Taxable room rent — no ITC
- Non-ICU room > ₹5,000/day
- GST applies to the room charge only
- No Input Tax Credit for the hospital
- Treatment on the same bill stays exempt
Cosmetic & Plastic Surgery
Cosmetic surgery, plastic surgery and aesthetic procedures are taxable at 18% — except where undertaken to restore or reconstruct anatomy or function affected by a congenital defect, developmental abnormality, injury or trauma, which remains exempt as healthcare.
The test is purpose, not procedure. The same surgeon's work can be exempt (reconstruction after an accident) or taxable at 18% (elective aesthetic enhancement). Hospitals should classify each procedure and bill the taxable portion correctly to avoid demand notices.
Need help classifying taxable vs exempt procedures on hospital bills?
Get GST Advice →GST on Medicines & Medical Products
Medicines are goods, so they are taxed at their own HSN rate even when supplied by a hospital pharmacy. Most drugs are 5% or 12%; certain life-saving/specified drugs are 5% or Nil; a few items (human blood, some contraceptives) are exempt. Patients are end consumers and cannot claim ITC.
| Medicine / Product | GST Rate | Notes |
|---|---|---|
| Most formulations & branded medicines | 5% / 12% | As per HSN classification |
| Life-saving / specified critical drugs | 5% / Nil | E.g. certain cancer & specified drugs |
| Branded AYUSH medicines | 12% | Ayurvedic, Unani, Siddha, Homeopathy |
| Human blood & its components | Nil | Fully exempt |
| Basic diagnostic devices | 5% | Glucometer, BP monitor |
| General medical devices | 12% | Stents, implants, orthopaedic |
Rates depend on the exact HSN code — verify each product on the CBIC rate finder before invoicing.
A hospital pharmacy that sells medicines and consumables makes a taxable supply of goods and must handle GST registration, invoicing and returns for that activity, separately from its exempt healthcare services. See our HSN / rate finder guide.
Run a pharmacy or hospital store? Get your GST registration and returns handled.
Get Pharmacy GST Help →GST on Health & Life Insurance
Under the GST 2.0 reforms effective 22 September 2025, GST on individual health and life insurance premiums is exempt (previously 18%). This covers individual, family-floater and senior-citizen health policies and individual life policies (term, endowment, ULIP). The premium payable no longer carries a GST component for individuals.
- Individual health & life insurance premiums are now GST-exempt — no 18% add-on.
- The Section 80D income-tax deduction for health-insurance premium continues (₹25,000 for self/family; ₹50,000 where a senior citizen is insured).
- For genuinely exempt supply, insurers cannot pass through blocked input GST as a separate charge — confirm the exact impact on your renewal quote.
- Group/employer policies and other lines of general insurance follow their own treatment — check the current position for your policy type.
If a renewal notice dated on or after 22 September 2025 still shows 18% GST on an individual health or life premium, query it with the insurer — the exemption should apply. Keep the premium receipt for your 80D claim.
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