Is GST applicable on hospital and doctor services?

No. Healthcare services provided by hospitals, clinics, and doctors are completely exempt from GST. This includes medical consultation, surgical procedures, diagnostic services, physiotherapy, and dental treatment. Cosmetic surgery (not medically necessary) attracts 18% GST.

What is the GST rate on medicines in India?

Most medicines attract 5% GST under GST 2.0 (reduced from 12%). Life-saving drugs, oncology medicines, and rare disease drugs are exempt (0%). The full list of 36 zero-rated life-saving drugs is available on the CBIC website.

What is the GST rate on medical devices?

Medical devices including diagnostic equipment, surgical instruments, and hospital equipment attract 5% GST under GST 2.0, reduced from 12–18%. Hearing aids and wheelchairs continue at 5%.

Can a hospital claim ITC on its purchases?

Hospitals providing only exempt healthcare services generally cannot claim ITC on their inputs (medicines, equipment, etc.). If a hospital provides both exempt services (medical treatment) and taxable services (cosmetic surgery, premium room rent above ₹5,000/day), it can claim proportionate ITC on inputs used for taxable services.

Is GST applicable on hospital and doctor services?

No. Healthcare services provided by hospitals, clinics, and doctors are completely exempt from GST. This includes medical consultation, surgical procedures, diagnostic services, physiotherapy, and dental treatment. Cosmetic surgery (not medically necessary) attracts 18% GST.

What is the GST rate on medicines in India?

Most medicines attract 5% GST under GST 2.0 (reduced from 12%). Life-saving drugs, oncology medicines, and rare disease drugs are exempt (0%). The full list of 36 zero-rated life-saving drugs is available on the CBIC website.

What is the GST rate on medical devices?

Medical devices including diagnostic equipment, surgical instruments, and hospital equipment attract 5% GST under GST 2.0, reduced from 12–18%. Hearing aids and wheelchairs continue at 5%.

Can a hospital claim ITC on its purchases?

Hospitals providing only exempt healthcare services generally cannot claim ITC on their inputs (medicines, equipment, etc.). If a hospital provides both exempt services (medical treatment) and taxable services (cosmetic surgery, premium room rent above ₹5,000/day), it can claim proportionate ITC on inputs used for taxable services.

GST Rate Finder

GST Rates · Healthcare & Medicines

GST 2.0 Updated

GST Rates on Healthcare & Medicines

GST rates on healthcare and medicines in India 2026. Hospital services are fully exempt. GST 2.0 reduced medicine rates to 5%, exempted 36 life-saving drugs, and removed GST on health and life insurance premiums.

Exempt (0%)

At 5% GST

GST 2.0 — Effective September 22, 2025

GST on health and life insurance premiums removed. Medicines reduced from 12% to 5%. 36 life-saving drugs now at 0%. Medical devices reduced from 12–18% to 5%.

Healthcare is one of the most GST-favoured sectors in India. Core medical services — hospital treatment, doctor consultations, diagnostic services — are completely exempt from GST. GST 2.0 (September 22, 2025) brought further relief: most medicines were reduced from 12% to 5%, 36 life-saving drugs (including oncology and rare disease drugs) were made fully exempt, medical devices were reduced from 12–18% to 5%, and GST on health and life insurance premiums was removed entirely.

All Healthcare & Medicines — GST Rates and HSN Codes

Product / Service	HSN Code	GST Rate	Notes
Medicines and Drugs	3004	5% GST	Life-saving drugs/vaccines: 0%. Other medicines: 5%.
Medical Devices and Equipment	9018	5% GST	Medical devices including diagnostic equipment, surgical instruments, and hospital equipment attract 5% GST.
Health Insurance Premium	9985	Exempt	Exempt (0% GST) on individual health insurance premiums from 22 Sep 2025 under GST 2.0. Premiums remain deductible under Section 80D of the Income Tax Act.
Life Insurance Premium	9985	Exempt	Exempt (0% GST) on individual life insurance premiums from 22 Sep 2025 under GST 2.0. Earlier: 18% on term premiums; 18% on 25% of first-year endowment premium.