GST on Healthcare 2026 — Hospital Services, Medicines & Health Insurance GST Rates

Updated: 3 June 2026 | Notification 12/2017-CT(R) | Medicines, Equipment & Insurance | Section 80D

Healthcare services provided by hospitals, clinics, doctors, and diagnostic centres are fully exempt from GST. This covers OPD fees, IPD charges, surgery, diagnostic tests, ambulance services, and blood banks. Medicines are taxable at 5% to 12% GST depending on classification. Health insurance premiums attract 18% GST (deductible under Section 80D). Cosmetic procedures (hair transplant, aesthetic surgery) are taxable at 18% GST as they are not medically necessary treatments.

Exempt

Hospital treatment, doctor consultation, diagnostics — all Nil GST
Cosmetic surgery and beauty treatments are excluded from the exemption and taxed at 18% GST.

GST Exempt Healthcare Services

Under Notification No. 12/2017-Central Tax (Rate), the following healthcare services are exempt from GST:

Hospital services — all charges by a clinical establishment for diagnosis, treatment, and care (OPD, IPD, ICU, operation theatre, room rent)
Doctor consultation fees — fees charged by authorised medical professionals including MBBS doctors, specialists, surgeons
Dentists — dental treatment services by registered dental practitioners
Physiotherapy — if provided by a qualified physiotherapist as part of medical treatment
Diagnostic centres — pathology labs, radiology (X-ray, MRI, CT scan), blood tests, urine tests
Ambulance services — transportation for medical emergencies
Blood banks — services related to storage and supply of human blood and blood components
AYUSH practitioners — services by Ayurvedic, Unani, Siddha, and Homeopathic doctors who are authorised medical professionals
Mental health services — provided by registered psychiatrists and psychologists at clinical establishments
Cord blood banking — storage services for umbilical cord blood

Taxable Healthcare Services

The following services in the healthcare sector attract GST and are not covered under the exemption:

Cosmetic surgery — rhinoplasty, liposuction, breast augmentation, botox, fillers — 18% GST
Hair transplant — 18% GST (classified as cosmetic, not medical treatment)
Beauty treatments at clinics — laser hair removal (cosmetic), skin whitening treatments — 18% GST
Wellness / spa services — massage, steam, sauna at wellness centres — 18% GST
Hospital canteen / cafeteria — food services within hospital premises — 5% GST
Parking charges at hospitals — 18% GST
Sale of medicines / drugs from pharmacy — 5% to 12% GST (see table below)

GST Rate Table — Healthcare Services, Medicines & Equipment 2026

Service / Product	GST Rate	ITC Available?	Remarks
Hospital treatment (OPD/IPD/Surgery)	Nil	N/A (exempt)	All clinical establishments
Doctor consultation fee	Nil	N/A (exempt)	Authorised medical professionals
Dental treatment	Nil	N/A (exempt)	Registered dentists
Physiotherapy (medical)	Nil	N/A (exempt)	As part of medical treatment
Diagnostics — pathology / radiology	Nil	N/A (exempt)	Diagnostic centres
Ambulance services	Nil	N/A (exempt)	All ambulance providers
Cosmetic surgery / hair transplant	18%	No (B2C)	Not for treatment of disease
Life-saving drugs (specific list)	5%	Yes (B2B only)	Insulin, cancer drugs, etc.
Most medicines and drugs	12%	Yes (B2B only)	Branded formulations
Ayurvedic / AYUSH medicines (branded)	12%	Yes (B2B only)	Dabur, Patanjali, etc.
Human blood and components	Nil	N/A (exempt)	Blood banks
Contraceptives	Nil	N/A (exempt)	Fully exempt
Medical devices — diagnostic (basic)	5%	Yes	Glucometer, BP monitor
Medical devices — general	12%	Yes	Stents, implants, orthopaedic
Medical equipment — high-tech	18%	Yes	MRI machines, surgical robots
Health insurance premium	18%	No (individuals)	80D deduction on premium+GST

GST on Health Insurance — 18% and the 80D Connection

Health insurance premiums attract 18% GST. When you pay a health insurance premium, the insurer adds 18% GST on top of the base premium. For example, if your base premium is ₹10,000, you pay ₹11,800 including GST.

Key points on health insurance GST and tax deductions:

No ITC for individuals — unregistered individuals cannot claim Input Tax Credit on GST paid on insurance premiums
Section 80D deduction — the entire premium amount paid (including the 18% GST component) qualifies for deduction under Section 80D of the Income Tax Act
Deduction limit: ₹25,000 per year for self and family (below 60 years); ₹50,000 if the insured person is a senior citizen (60+ years)
Group health insurance premiums paid by employers — employer can claim ITC if the insurance is a mandatory benefit; employees cannot claim the deduction on employer-paid premiums
This 18% GST on insurance has been a subject of public debate; reduction has been proposed but not yet implemented as of June 2026

Frequently Asked Questions

Do hospitals charge GST on treatment fees?

No. Healthcare services provided by a clinical establishment (hospitals, nursing homes, clinics, dispensaries, etc.) for the diagnosis, treatment, or care of any illness, disease, injury, or deformity are fully exempt from GST under Notification No. 12/2017-CT(R). This includes OPD consultation fees, IPD (in-patient) charges, room rent, ICU charges, operation theatre charges, and diagnostic tests conducted within the hospital. A hospital only needs to charge GST on non-medical services like canteen (5%), parking fees (18%), or cosmetic procedures (18%).

What is the GST on medicines purchased from a pharmacy?

Most medicines and drugs are taxable at 12% GST. However, life-saving drugs and certain critical medicines are taxed at 5% GST. A few specific items like human blood and its components, contraceptives, and certain specified vaccines attract Nil GST. Ayurvedic, Unani, Siddha, and Homeopathic medicines (branded) typically attract 12% GST. Over-the-counter (OTC) medicines and supplements are generally at 12% or 18%. The exact rate depends on the HSN code classification — patients cannot claim ITC on medicine purchases as they are end consumers.

Is GST charged on health insurance premiums?

Yes. Health insurance premiums attract 18% GST. This applies to all types of health insurance policies — individual, family floater, senior citizen, and group health insurance. The GST is charged by the insurer on the premium amount. While individuals cannot claim ITC on this GST, the premium paid (including the GST component) is eligible for deduction under Section 80D of the Income Tax Act — up to ₹25,000 for self/family and up to ₹50,000 for senior citizen parents. So the total premium paid (including 18% GST) forms the basis for the 80D deduction.

Is GST applicable on Ayurvedic medicines?

Yes. Branded Ayurvedic, Unani, Siddha, and Homeopathic (AYUSH) medicines attract 12% GST. Unbranded/loose preparations in their natural form may be exempt or at lower rates. Products like Dabur Chyawanprash, Patanjali products, and other branded AYUSH products sold in retail packaging are taxable at 12% GST under the relevant HSN codes. Services rendered by Ayurvedic doctors and AYUSH hospitals are exempt from GST if provided by authorised medical professionals or clinical establishments.

Is cosmetic surgery or hair transplant exempt from GST?

No. Cosmetic surgery and procedures that are not medically necessary are taxable at 18% GST. This includes hair transplant, liposuction, rhinoplasty (nose job), breast augmentation, botox injections for cosmetic purposes, and similar aesthetic procedures. However, if a cosmetic procedure is required for medical treatment of a disease or injury (e.g., reconstructive surgery after an accident), it may be exempt as it falls under "healthcare services for treatment of illness or injury". The distinguishing test is whether the procedure is for treatment of a health condition or purely for enhancement of appearance.

GST on Medicines GST on Insurance GST Exemption List GST Rate List Section 80D Deductions

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