Exempt SectorsSocial Welfare

GST on Healthcare & Education — Exemptions & Applicability

Detailed guide on GST treatment of healthcare services (hospitals, clinics, pharmacies) and education sector (schools, colleges, coaching, EdTech). Understand what's exempt, what's taxable, and at what rate.

Exempt

Healthcare

Exempt

Education (K-12)

18%

Higher Education

5-12%

Pharma (Medicines)

12%

Medical Equipment

Exempt

Room Rent (≤₹5K)

Room Rent (>₹5K)

12/2017

Notification

Healthcare — GST Provisions

Hospital Services — Exempt

Clinical establishment services by hospitals, nursing homes, clinics, and sanatoriums are fully exempt from GST. Includes consultation, diagnosis, treatment, and inpatient care.

Hospital Room Rent

Room charges up to ₹5,000/day are exempt. Rooms above ₹5,000/day (excluding ICU) attract 5% GST without ITC on the entire amount (not just the excess), effective from July 2022.

Ambulance & Emergency

Ambulance services are fully exempt from GST. Emergency medical services, blood bank services, and organ/tissue retrieval services are also completely exempt.

Pharmaceutical GST Rates

Formulations and medicines at 12%, bulk drugs at 18%. Life-saving drugs and vaccines at 5%. Ayurvedic/Unani/Siddha/Homeopathy at 12%. Medical devices at 12% (reduced from 18%).

Cosmetic/Elective Procedures

Cosmetic surgery, hair transplants, dental cosmetics, and other elective procedures NOT covered under medical treatment definition attract 18% GST as they are not considered healthcare.

Diagnostic Services

Pathology labs, radiology centres, and diagnostic centres operated by clinical establishments are exempt. However, standalone health check-up packages by non-clinical entities may attract 18%.

Education — GST Provisions

School Education — Exempt

Pre-school to higher secondary education by educational institutions is fully exempt. Includes tuition fees, admission fees, laboratory fees, library fees, and transport (if provided by school).

Higher Education — Exempt

Degree/diploma courses by institutions affiliated to UGC/AICTE/government are exempt. Includes universities, IITs, IIMs (for degree programmes), and colleges approved under Section 2(15) of UGC Act.

Vocational & Coaching — 18%

Private coaching classes, test prep (IIT-JEE/NEET/CAT), foreign language courses, professional certifications (non-UGC), and hobby classes attract 18% GST.

Online Education/EdTech — 18%

Recorded courses, online coaching platforms, and EdTech services (Byju's, Unacademy type) attract 18% GST as they are classified as IT/ITES services, not education.

Mid-Day Meal & Government Training

Mid-day meal schemes (Akshaya Patra etc.), government-sponsored skill development (NSDC), and vocational training under PMKVY are fully exempt from GST.

Research & Development

Pure research funded by government grants is exempt. Contract research for private entities attracts 18%. IIT/IISc sponsored research services are exempt when funded by government.

GST Rate Summary — Healthcare & Education

Service/Goods	GST Rate	Condition
Hospital treatment & care	Exempt	By clinical establishment
Room rent (≤₹5,000/day)	Exempt	Non-ICU rooms
Room rent (>₹5,000/day)	5%	Non-ICU, w/o ITC, from Jul 2022
ICU/ICCU room charges	Exempt	Regardless of amount
Ambulance services	Exempt	All ambulance services
School education (K-12)	Exempt	Recognized institution
University degree courses	Exempt	UGC/AICTE approved
Private coaching/tuition	18%	Not recognized institution
Online courses (EdTech)	18%	Classified as IT services
Medicines (formulations)	12%	Branded medicines
Life-saving drugs	5%	As per notification list
Medical devices/equipment	12%	Reduced from 18% (2021)

Frequently Asked Questions

Is GST applicable on hospital bills?

Hospital treatment and care by clinical establishments is fully exempt from GST. However, room charges exceeding ₹5,000/day (excluding ICU) attract 5% GST from July 2022. ICU charges remain exempt regardless of amount. Cosmetic/elective procedures attract 18% GST.

Is school/college education exempt from GST?

Yes, education from pre-school to higher secondary (Class 12) by recognized institutions is fully exempt. Higher education (degree/diploma) by UGC/AICTE-approved universities and colleges is also exempt. Only private coaching, EdTech platforms, and unrecognized institutions attract 18% GST.

What is the GST rate on medicines?

Most branded formulations attract 12% GST. Life-saving drugs and vaccines are at 5%. Bulk drugs/APIs are at 18%. Ayurvedic, Unani, Siddha, and Homeopathic medicines are at 12%. Medical devices were reduced from 18% to 12% in 2021.

Do online education platforms charge GST?

Yes, online education platforms (EdTech companies offering recorded courses, live coaching, test prep) charge 18% GST as their services are classified as Information Technology services, not educational services. Only live classes by recognized institutions providing recognized qualifications are exempt.

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