MEDICAL SERVICES

UNDER GST

By- SAURAV SINGH

Enroll- 150101119
 WHAT’S INSIDE ?

•Introduction to GST
•GST Implication on different Sectors
•Input Tax Credit
•Reverse Charge Mechanism
•Registration Time of Supply under GST
•Valuation under GST
INTRODUCT
ION OF GST

 For Every Business Or Profession ,

GST Stands For:
G – GOOD (Goods)
S – SIMPLE (Service)
T – TRANSPARENT (Tax),
 Goods and Service Tax (GST) is a comprehensive tax levy on
Manufacture, Sale and Consumption Consumption of Goods and Service
Service at a National National level.
 GST subsumed various taxes in itself like:
Service Tax
Entertainment Tax,
VAT,
Various Cess.
 In India, Dual model of GST is decided to subsumed state as well as
central level taxes.
 GST IMPLICATION

Medical Sector has various sectors which is covered by GST under different sections
and thus the following sectors are to be covered in this presentation of Medical
Sector:

Sr. no. Services

1 Services for OPD
2 Services for IPD
3 Medical Shops
4 Renting
5 Medical Consultancies
6 Bio Medical waste treatment
7 Various medical tests
8 Beauty treatment
9 Blood Bank services
10 Veterinary Doctor
Coverage of Medical Practitioners

Acupressure Balneotherapy Reiki

Acupunture Naturotherapy Reflexology

Aromatherapy Chiropractic Biofeedback

Ayurvedic medicine Homeopathy Allopathy

 EXEMPTION ENTRY FOR MEDICAL
PROFESSIONALS
• Entry No: 82 of Exemption List of services from GST
states that:
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. are exempt from GST.
Thus to understand which services are exempt from GST,
explanation for the following terms from the above
exemption entry in the Exemption List: a. Health-Care
Services b. Clinical Establishment c. Authorized
Medical Practitioners
 Explanations
• Health Care service means any service by way of diagnosis or treatment or care for
illness, injury, deformity, abnormality or pregnancy in 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; a.
• Clinical Establishment means a hospital, nursing home, clinic, sanatorium or any other
institution by, whatever name called that offers services or facilities requiring diagnosis
or treatment or care for illness, injury, deformity, abnormality or pregnancy in any
recognised system of medicines in India or a place established as an independent entity
or a part of an establishment to carry out diagnostic or investigative services of
diseases.
• Authorized Medical Practitioner means a 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 as per any law for the time being in force.
 GST IMPLICATION ON OPD AND IPD
 the medical professionals giving OPD SERVICES will not be
covered under GST and they don’t have to thus collect from
patients or pay GST to Government
 IPD includes; room renting, food supply, pharmacy, nursing,
laundry for hospital cloths, Maternity Services and various
testing like blood test, etc.
 Entry 82 of the exemption list:
1. Health care services by a clinical establishment, an
authorized medical practitioner or Para-medics;
2. Services provided by way of transportation of a patient in
an ambulance, other than those specified in above.
 GST on Medical Shops
Particulars Rates

Insulin (as per Notification issued on 11th 5%

June,2017)
Medicaments consisting two or more 12%
constituents mixed together for
therapeutic/prophylactic uses (including
Ayurvedic, Unani, Siddha, homoeopathic or
Bio-chemic systems) {Not put up in measured
doses/packings for retail sale}

Medicaments consisting mixed/Unmixed 12%

Product for therapeutic/ prophylactic
uses(including Ayurvedic, Unani, Siddha,
homoeopathic or Bio-chemic systems) {Not put
up in measured doses/ packings for retail sale}

Wadding gauge, bandages, and similar articles 12%

Forms/ packing for retail sale regarding 12%

surgical, dental or veterinary purposes
 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:
 Medical Shops on rent in Hospital Premises
 Medical Shops on Rent at any other premises
 Hospital On rent at any premises
 Medical Medical Tests Centre on Rent in Hospital
or at any other premises

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
 GST ON MEDICAL CONSULTANCY
Medical Consultancy hereby refers to the consultancy by an
authorized medical practitioners for the different purposes
which do/do not involve the treatment for the same. The
purposes for which Medical Consultancy can be given are as
follows:
 Dietitians
 Health-Care Consultants
 Weight-Loose Consultants, etc

NO GST will be levied on such Medical Consultancy services as defined above Note: The
Medical Consultants hereby does not include the Consultants or the Treatment for the Beauty
Treatment or Gym Centers run by the Authorized Medical Practitioners as they are covered in
separate slides below. 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.
GST on Bio-Medical waste treatment
Entry No: 11 of “Exemption of Services from GST “ list states that:
Services provided by operators of the Common Bio-medical
Waste Treatment Facility to a clinical establishment by way of
treatment or disposal of bio-medical waste or the processes
incidental thereto

Thus when the services are provided by the Bio-Medical Waste

Treatment operator to the clinical establishment for treatment of Bio-
Medical Waste, NO GST will be levied on such services.
 GST on Blood Bank Services
Entry No: 60 of “Exemption of Services from GST “ list states that: Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation.
Thus not only the services of preservation of stem cells by Blood Banks are exempt but also all the other services needed by Blood Bank for such preservation are covered covered in above entry and are exempt.

Cord Blood Banks include Other Blood Banks and thus the services provided by
Cord/Other Blood Bank for preservation of stem cells or any other services for
such preservation are covered in Entry No: 60 and are thus Exempt NO GST will be
levied on such services.
 GST on Beauty treatment
• As specified in above slides, if the services are for CURE,
it will be Exempt under Entry No: 82 and if such services
are for CARE, it will be taxed under GST.
• Beauty treatment includes hair cutting, hair dyeing, hair
dressing, face and beauty treatment, cosmetic
treatment, manicure, pedicure or counseling services on
beauty, face care or make-up or such other similar
services.
Thus it can be said that the beauty treatment services are mostly provided for the
CARE purpose and not for the CURE purpose. Thus as per Entry No: 36 of “Rate
Schedule for services”, 18% GST will be levied on such services of Beauty
Treatment.
GST on Veterinary Doctor Services
• Veterinary medicine is the branch of medicine that deals with
the prevention, diagnosis and treatment of disease, disorder
and injury in non-human animals. And Veterinary doctor
refers to doctor for the treatment of animal’s or bird’s disease
and such other services for the same.
• Entry No: 12 of “Exemption of Services from GST “ list states :
Services by a veterinary veterinary clinic in relation relation to
health care of animals animals or birds.
Thus the services by Veterinary clinic for health care of animals or birds
BUT by an Authorized Medical practitioners are covered in Entry No: 12
and are thus Exempt NO GST will be levied on such services.
 Input tax credit
Input Tax is the GST paid by a taxpayer on purchase of Goods
or receipt of Services for furtherance of his business.
Registered taxable person is not entitled to input tax credit on
supply of services unless he:
• Is in possession of a tax invoice, invoice, debit note or such
other taxpaying taxpaying document
• Services are received or has been taken on the direction of
the receiver.
• Tax on such services are deposited with the Government or
utilized as the InputTax Credit admissible in respect of the said
supply.
• He has furnished return as per section 27 i.e. GSTR 3.
 Reverse charge mechanism
Reverse Charge Mechanism is the mechanism where the
taxes is to be paid not by the service providers but by the
service receiver. It is opposite to Normal Charge Mechanism.
The following services are covered in RCM as relevant in this
Medical Sector:
Services received from person 18%
located in Non Taxable Territory.

Legal Services from an Advocate 18%

or firm of Advocate s

Services from Government or 18%

Local Authority
 Registration under GST
• Registration is required if aggregate turnover in an financial
year exceeds Rs. 20 lakhs
• The assessee must get himself register within 30 days from
the date when it become liable to Register.
• If the Distributor or Exhibitor provides his services in
different states, every distributor or exhibitor in every state
need to take registration under every states separately.
• There is no need to take separate registration under GST.
But the assessee has to submit documents as may be
prescribed within the time limit as may be prescribed.
 Registration Certificate
• On Registration, Registration Certificate shall be issued within
prescribed form.
• Unique identity Number (UIN) is granted/issued from effective
date of registration.
• The taxpayer will be allotted a State wise, PAN based, 15 digit
Goods and / or services Taxpayer Unique Identification
Number (GSTIN). The various digits in the GSTIN will denote
the following:-
State PAN Entity Blank Check digit
code code
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15