February 23, 2023

First Step to Cover Healthcare Services under GST

India has implemented the Goods and Services Tax (GST) system to simplify the taxation process and make it easier for businesses to comply with tax laws. The healthcare sector is one of the vital sectors that have been brought under the ambit of GST. In this article, we will discuss the first step necessary to cover healthcare services under GST.

The GST system for healthcare services

Healthcare services are divided into two categories under the GST system:

1. Healthcare services provided by a clinical establishment, an authorized medical practitioner, or para-medics; and

2. Healthcare services that are not covered under the first category, such as cosmetic surgery, health check-ups, fertility treatments, and others.

The first category of healthcare services is exempt from GST. However, the second category of services is subject to GST. The GST rate for healthcare services that are not covered under the first category is 18%.

First Step to Cover Healthcare Services under GST

The first step to cover healthcare services under GST is to obtain a GST registration. A healthcare service provider must register for GST if their annual turnover exceeds Rs. 20 lakh (Rs. 10 lakh for special category states).

The steps to obtain GST registration are as follows:

1. Visit the GST portal and create a new account.

2. Submit the required documents, including PAN, Aadhaar, and bank account details.

3. Complete the GST registration form, which requires information such as the name of the business, its address, and the type of healthcare services provided.

4. Once the registration is complete, the healthcare service provider will receive a GST registration certificate.

It is important to note that healthcare service providers must file regular GST returns and pay taxes on time to avoid penalties.

Benefits of covering healthcare services under GST

Bringing healthcare services under the GST system has several benefits, such as:

1. Reduced tax burden: Healthcare services providers can claim input tax credits, which reduces their tax burden.

2. Simplified taxation: The GST system simplifies the taxation process for healthcare service providers by replacing multiple taxes with a single tax.

3. Increased compliance: The GST system encourages compliance with tax laws, which helps to reduce tax evasion and improve the healthcare sector.


Covering healthcare services under the GST system is a crucial step to simplify the taxation process and encourage compliance with tax laws. Healthcare service providers must obtain GST registration and file regular GST returns to avoid penalties. The GST system provides several benefits, including reduced tax burden, simplified taxation, and increased compliance.


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