GST on Healthcare Service
Introduction: In this situation where healthcare service is our top priority it is important to determine which of the service relating to health care are exempted under Goods and Services Tax and which are taxable. Whether any such service attracts reverse charge mechanism i.e. instead of supplier, recipient will deposit the tax. In below article we will discuss all the provision specified under GST relating to healthcare service.
Whether service provide by hospital to is patients are chargeable to GST?
Any service provided by hospital to its patient in form of retention money and the any fees or payments made to the doctors etc., is towards the healthcare services provided by the hospitals to the patients and is exempted vide notification no. 12/2017.
Whether service provided by senior doctors/consultant/technicians hired by hospital will be taxable?
If doctors are providing service as professional: Even if service provided by the doctors are in nature of independent professional service, they are healthcare service and it has been specified that such service are exempted vide notification no. 12/2017.
If doctors are providing service in form of employee: If such service are provided in course of employment then in that case such service are not considered as supply as according to clause 1 of schedule 1, it prescribes that any service provided by employee to its employer in course of employment are not to be considered as supply.
What if food is supplied to patient? Whether such will be exempted if it has been provided to attended along with patient?
Any food which is supplied to patient as advised by doctor is exempted by virtue of said notification as it will be treated as composite supply with health care service, however if any food is supplied to any attended who is there with patient then in that case it will be treated as supply of service.
What if service is provided by veterinary clinic?
If service is provided by a veterinary clinic in relation to health and care of animals or birds will be exempted by virtue of notification no. 12/2017.
What if service is provided by ambulance hired by hospital for transportation of patient?
In such case there are two services which are involved in above transaction, one being service provided by hospital to patient for there transportation via ambulance and other service provided by ambulance to hospital; it shall be noted that both the transaction is covered under exemption list and therefore it will be exempted. If ambulance is owned by hospital itself then in that case also it will be exempted.
Further it shall be noted that if service is provided by ambulance to any other person other than patient for consideration then in that case it will be taxable as any other service.
Whether service provided by cord blood banks to hospital are exempted or not?
If any service is provided by cord blood banks to hospital in relation to preservation of stem cells or other service in relation to preservation of stem cell will be exempted. However, if any other service is provided by them to hospital than such will be taxable as if any other normal service.
Whether service provided by operators of bio-medical waste treatment facility is exempted?
Yes, any service provided by operators of bio-medical waste treatment facility by way of treatment or disposal of bio-medical waste to any clinical establishment will be exempted by virtue of notification no. 12/2017.
Whether any service other than above two service provided to hospital is exempted?
Service provide to any clinical establishment other than above two will attract normal taxability and said are not exempted.
Whether service provided by medical laboratory are exempted?
This service is in nature of analysis and testing services and such service are not covered under any notification and therefor they are not exempted and will be taxable as if any normal service is taxable.
Government is very clear about taxability of health service and as we can see that all the majority of service received by patient are covered under exemption list.