No GST on patient’s food


No GST will 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 frequently asked questions (FAQs), the Revenue Department also clarified that no Goods and Services Tax will be levied on services provided by senior doctors/consultants/technicians hired by the hospitals as these are covered under healthcare services.

The FAQ said the food supplied to in-patients was not separately taxable as it formed part of the composite supply of healthcare, already exempt under the GST.

“The food supplied to in-patients, as advised by the doctor/nutritionists, is part of the composite supply of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not admitted) or attendants or visitors are taxable,” it said.

As per the 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/payments made to the doctors, etc, is towards the healthcare services provided by the hospitals to the patients and is exempt (from GST),” it said.



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