Service by a Clinical establishment

Services provided with respect to the health care by clinical establishments or authorized medical practitioners or paramedics or services provided by way of transportation of patient in an ambulance had nil rate of GST vide Exemption notification no. 12/2017-Central Tax Rate, dated 28.6.17.

If any person is availing any services mentioned in the health care service definition by authorized medical practitioner (Person who has requisite qualification from the recognized medical college) or paramedics in a clinical establishments then in that case services provided shall be nil or service provided by way of transportation of patient in an ambulance by the clinical establishment then in that case the rate of GST shall be nil.

First let us look into the explanation of the terms provided in the GST Act.

As per Notification no. 12/2017-CT(R), dt.28.6.2017 “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 recognized 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;

Clinical Establishment means

1. Hospital
2. Nursing home
3. Clinic
4. Sanatorium or any other institution by whatever name called

that offers services facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India

5. place established as an independent entity or as a part of an establishment to carry out diagnostic or investigative services of diseases.

Health care services as per explanation no.(zg) of Notification no. 12/2017-Central Tax (Rate), dated. 28.6.2017 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, developmental abnormalities, injury or trauma;

Any service

a. by way of diagnosis or treatment or care for

1. illness
2. injury
3. deformity
4. abnormality
5. pregnancy

in any recognized system of medicines in India

b. 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 the above mentioned services of hair transplant, cosmetic or plastic surgery is undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma.

Authorized medical practitioner as per explanation no. (k) of Notification no. 12/2017-Central Tax (Rate), dated 28.6.2017 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;

Term Paramedics has not been defined in GST Act so definition has been taken from Oxford Dictionary – a person trained to give emergency medical care to people who are injured or ill, typically in a setting outside a hospital.

Whereas, after 47th GST Council meeting by Notification no. 4/2022-Central Tax (Rate), dated 13.7.22, effective from 18.7.2022, the Government has made certain exclusions from the above mentioned exemption. If the room has been provided by the clinical establishment then in that case the exemption will not be there and the service shall be chargeable at 2.5% CGST/SGST and the credit of input which has been charged on goods and services used in supplying the services shall not be taken (Notification no. 3/2022-Central Tax Rate, dated. 13.7.22).

However if the room charge is more than Rupees. 5000 on the below mentioned rooms for the person receiving health care services in clinical establishments, then in that case the rate of room shall be nil.

1. Intensive care unit (ICU)
2. Critical care unit (CCU)
3. Intensive cardiac care unit (ICCU)
4. Neo natal intensive care unit (NICU)