SL No. 74 Exemption for Healthcare Services

(a) Healthcare services by way of a clinical establishment, an authorized medical practioner or paramedics 
(b) Services provided by way of transportation of a patient in an ambulance, other than those specified (a) above.


What do you mean by Healthcare Services?
Any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregancy in any recognized system of medicines in India includes services by way of transportation of the patient to and from a clinical establishment but excludes hair transplant or cosmetic surgery not undertaken to restore or reconstruct anatomy affected due to congential defect, development abnormalities, injury or trauma.
What do you mean by Clinical Establishment?
A hospital, nursing home, clinic, sanatorium or any other institution by whatever name called that offers diagnosis, treatment or care  for illness, deformity, abnormality, injury or pregancy in any recognized medical system of India or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases (For Eg: Pathology Labs)
What do you mean by Paramedics?
Paramedics generally mean trained healthcare professionals such as nursing staff, physiotherapists, technicians, lab assistants, etc.
What are the recognized systems of medicines in India?
As per the Clinical Establishments Act, 2010, The recognized system of medicine in India are Allopathy, Yoga, Naturopathy, Ayurveda, Homeopathy, Siddha, Unani or any other system of medicine that may be recognized by the central government.

Cases & FAQ’s

Case 1: A doctor runs a diagnostic center and film distribution. He wants to sell the diagnostic equipment from his diagnostic center, for which separate accounts are kept. Should he charge GST on the sale of diagnostic machinery?
In the given case the sale transaction of diagnostic machinery falls under the scope of supply of goods and the same would be chargeable under CGST Act. The exemption as notified under NN 12/2017 is available for the supply of health care services only and not for supply of goods. In the absence of any exemption, the sale of diagnostic machinery will be liable to tax as a supply of goods
Case 2: The Tracto, an online portal, charges Rs. 500 for booking a doctor’s visit. Out of this amount the online booking charges Tracto takes is Rs. 90 and the balance Rs. 410 is transfered to the doctor. 
The online portal is not providing any healthcare service directly to the patients. It is merely facilitating the provisions of healthcare service by the doctors to an end patients. Thus, the service provided by the online portal is chargeable to GST and also it is acting as a pure agent.
Though Tracto has collected Rs. 500, only commission of Rs. 90 will be chargeable to GST under CGST Act. The Tracto, an online portal, costs Rs. 500 for booking a doctor visit. Of this amount, Tracto’s online booking fees are Rs. 90 and the balance Rs. 410 is given to the doctor. The online portal does not provide health services directly to patients and it just acts as a pure agent. It merely makes it easier for doctors to provide health services to an end patient. Thus, the service of the online portal is chargeable under GST. Though Tracto collected Rs. 500, only commission of Rs. 90 will be charged to GST as per CGST Act.
Is hair transplant or cosmetic surgery that is taken for beautification exempt under the above notification?
As per the meaning of healthcare service, only if the Hair Transplant or Cosmetic surgery done to restore or reconstruct the anatomy or functions of the body affected due to congenital defects, developmental abnormalities, injury or trauma are covered. Therefore, if the same is done for beautification purposes then the same shall not be covered by Exemption and hence it shall be taxable.
Is Reiki or Pranic healing treatment a healthcare service and exempt under the above notification?
The deifinition of healthcare covers the services that are recognised by the system of medicine in India and the reiki and pranic healing treatment in terms of clause (h) 2 in clinical establishment Act, 2010 does not recognize is as a system of medicine in India. So, Reiki or Pranic treatments is a taxable service.
Professional receipts by a doctor have exceeded Rs. 20 Lakhs will it be leviable under GST? If So, whether he/she is liable to take GST Registration?
As per section 23(1) of the CGST Act, any person exclusively engaged in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax is not liable for registration. Therefore, even if the professional receipts of a doctor exceeds Rs. 20 Lakhs then also he/she will not be liable to get registration under GST.
Whether an Air ambulance service that is provided to transport the critically ill patients from distant location is exempt from GST?
Healthcare services includes service by way of transportation of Patients to and from a Clinical Establishment. Thus, Air ambulance Service is a health care service, Hence it is exempted from GST.


CBIC Clarifications on certain issue related to health care via circulars

27/01/2018 dated 04/01/2018 Room Rent to patients Exempt
32/06/2018 dated 12/02/2018 Hiring of senior doctors Exempt
32/06/2018 dated 12/02/2018 Retention Money Exempt
32/06/2018 dated 12/02/2018 Food supplied to the patients admitted by hospital canteen Exempt
32/06/2018 dated 12/02/2018 Food supplied to Non-admitted patients (Visitors) by hospital canteen Taxable
32/06/2018 dated 12/02/2018 Food supplied to the Doctors and the staff by hospital canteen Taxable


Sl No. 74A Exemption for Rehabilitation Professionals

Sl No. 73 Exemption for Preservation of Stem Cells

Services provided by any cord blood banks by way of preservation of stem cells or any other service in relation to such preservation is wholly exempt.
What do you mean by Stem Cells?
Stem cell banking or preservation is the extraction, processing and storage of stem cells, so that they may be used for treatment in the future, when required.

Sl No. 75 Exemption for Treatment or Disposal of Bio-Medical Waste

Sl No. 46 Exemption for Healthcare of Animals or Birds Services