Notification 12/ 2017- Central Tax dated 28.06.2017 has exempted health care services as under:

“Health care Services by a Clinical Establishment or Authorized Medical Practitioner or Paramedics are exempt from Goods and services tax”

For understanding the exemption, we need to understand below important terms used in the said notification. These terms are also defined/ clarified in the explanations given in the notification as:




Clinical Establishments (registration and regulations) Act, 2010 defined the phrase ‘recognised system of medicines as below:

Recognised system of medicine means allopathy, Ayurveda, yoga, naturopathy, homeopathy, siddha and unanisystem of medicines or any other system of medicine as may be recognised by the central government.


  1. ABC Private Ltd is involved in providing the services of diagnosis, pre & post counseling, therapy and prevention of diseases by providing tests that are sophisticated and relevant.

    The medical team of the applicant is involved in the complete cycle and Hence they facilitate the diagnosis process.

    The applicant qualifies to be a clinical establishment and the service offered / provided by the Applicant qualify to be Health Care Services.The intra-state supply of said services attracts NIL rate of central tax.

  2. KLM hospital is involved in providing the services of plastic surgery. Mr S approached the hospital for cosmetic and plastic surgery for nose job. Since the treatment is for luxury and not necessity, it will be taxable under GST.

Declaration :

“The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received, or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation.”

Contributed By

Rutu Doshi

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