The Truth About GST on Hospital Services: Aaditya Iyengar's Guide
Aaditya Iyengar, a well-known finance influencer, guide you regarding unwanted and non-payable GST charges on hospital bills
The Truth About GST on Hospital Services: Aaditya Iyengar's Guide
Photo Credit: Aaditya Iyengar Instagram
- Aaditya Iyengar is a finance influencer
- Know the details about GST charges on hospital services
- GST free services
As you know healthcare charges continue to rise, patients need to understand their rights and the regulations regarding the costs charged during medical treatments. Aaditya Iyengar, a well-known finance influencer, has recently highlighted a critical issue concerning the application of Goods and Services Tax (GST) on hospital bills. Often, patients are unaware of which services are GST-exempt and which are not, leading to overcharges that could have been avoided with proper guidance and knowledge.
Understanding GST on Hospital Services:
GST is a tax on goods and services sold internally for consumption. While it is a broad tax applied to many goods and services, certain healthcare services are free from GST. Knowing about this can save patients from unnecessary expenses.
Suppose a patient receives a hospital bill amounting to Rs. 5 lakh and is informed that they must pay an additional 18% GST on this amount. Without proper knowledge, the patient might follow and pay the total, including the non-payable GST charges. However, as Aaditya Iyengar highlights, most of the services listed in the bill might be exempt from GST. Here, know the proper details.
GST-Exempt Services:
Doctor Consultation and OPD Services
- Consultations with doctors and Outpatient Department (OPD) services are GST-exempt. Patients should not be charged GST for these services.
Hospital Room Rent
- If a patient is admitted to a hospital room with a rent below Rs. 5000 per day, this service is free from GST. Only rooms costing above this entrance attract GST.
Ambulance Services
- GST does not apply to ambulance services. Any charges for using an ambulance should be GST-free.
Blood Bank Services
- Services provided by blood banks, including the cost of blood and blood products, are exempt from GST.
Counseling Services
- Medical and psychological counseling services provided by hospitals are GST-exempt.
Medical Tests
- Diagnostic and laboratory tests conducted for medical reasons are also GST-free.
GST on Medicines:
In terms of medicine, these rules become slightly complicated regarding the GST charge. According to the law, different medicines have different charges up to 5% to 18%. Here is the list.
Life-Saving Medicines
- Medicines categorized as life-saving treatments, such as vaccines, Bulk drugs, ayurvedic and homeopathic treatments, diagnostic test kits, and orthopedic appliances all attract 5% GST.
Non-Essential Pharmaceutical Products
- Other pharmaceutical products that are not classified as essential attract a higher GST rate of 18%. On the other hand medicines for personal consumption, sterile goods for wound closure, and gloves-like items attract 12%.
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