The Goods and Services Tax (GST) will not be charged on the cost of food served to patients by hospitals as advised by doctors, the government has said.
However, patients not admitted will have to pay tax on the total value of food served by the hospital.
In a set of FAQs, the revenue department also clarified that no GST would be levied on services provided by senior doctors/consultants/ technicians hired by the hospitals as these are covered under healthcare services.
The FAQ said food supplied to in-patients is not separately taxable as it forms a part of composite supply of healthcare, which is exempt under the GST.
“Food supplied to in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable,” it said.
As per GST law, healthcare services have been defined to include any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicine in India.
“The entire amount charged by them (hospitals) from the patients, including the retention money and the fee or payments made to the doctors, is towards the healthcare services provided by the hospitals to the patients and is exempt (from GST),” the FAQ said.
{{/usCountry}}“The entire amount charged by them (hospitals) from the patients, including the retention money and the fee or payments made to the doctors, is towards the healthcare services provided by the hospitals to the patients and is exempt (from GST),” the FAQ said.
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