GST on Telemedicine and Healthcare Technology: Applicability & Tax Rates
Healthcare in India enjoys wide GST exemptions, but the rise of telemedicine and health-tech platforms has created grey areas. Whether GST applies often depends on who is providing the service and how it is packaged. This guide explains the GST position on traditional healthcare, telemedicine, and healthcare technology products.
Traditional healthcare services are exempt
Under GST Notification No. 12/2017, the following are exempt from GST when provided by authorised medical establishments:
- Services by hospitals, clinics and doctors
- Ambulance services
- Nursing, midwifery and paramedical services
- Blood banks and organ donation services
Telemedicine: the key distinction
Teleconsultation by a registered medical practitioner — exempt from GST, just like an in-person consultation.
Teleconsultation through a non-medical platform (aggregator or app) — subject to 18% GST.
The line turns on whether the platform merely facilitates the service (aggregator, taxable) or the healthcare is provided directly by a registered practitioner (exempt).
Healthcare technology products
| Product category | GST rate |
|---|---|
| Diagnostic devices (glucometers, oximeters) | 12% |
| Ventilators, infusion pumps | 12% |
| Hospital equipment (beds, examination tables, wheelchairs) | 18% |
| Essential / life-saving medicines | 5% |
| Vaccines and general medicines | 12% |
| Ayurvedic / Homeopathic products | 12% |
Bundled services
When telemedicine is packaged together with devices or other components, the whole bundle is generally taxed at the highest rate among the items — usually 18%. Structuring and describing the supply carefully matters.
Who needs GST registration
Hospitals and clinics providing only exempt services do not need to register for GST. However, diagnostic labs, telemedicine platforms and pharmacies must register once turnover exceeds Rs. 20 lakh.
The sector’s GST challenges
The main pain points are high input GST on devices (12–18%), the inability of hospitals offering exempt services to claim input tax credit (so that GST becomes a cost), and higher costs for digital health platforms taxed at 18%. Getting the classification and structuring right is essential to avoid both overpayment and non-compliance.
Need expert help?
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This guide is general information and is not a substitute for professional advice. Rules, rates and deadlines can change — verify the latest position on the relevant official portal or consult a professional before acting.
