GST On Hospital Room Rent

Did you know? The Goods and Services Tax (GST) Council has declared that 5% GST will be applicable on hospital rooms (non-ICU) with a daily room rent of Rs 5,000 or above. The 5% GST on hospital room rent has been in effect since July 18, 2022.

This means:

Here is an overview of how your hospital bill could look like.

Note: This is just an example to illustrate GST impact, actual calculation might vary based on applicable terms.

Most people in India rely on expensive private healthcare, and either use their savings or insurance coverage to clear their medical bills. As of 2021, over 500 million Indians are covered by various insurance schemes. This has been particularly due to: 

Though more and more people are lowering medical bills by opting for health insurance, not all is well.

This tax hike can pinch a lot of people who are dependent on private healthcare. Moreover, insurance buyers may have to endure an increase in their insurance premium, as the insurer may also have to bear this additional cost. 

This 5% GST will not be getting an input tax credit as of now, which means that this cannot be adjusted with the final tax you pay.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary news sources on the internet, and is subject to changes. Please go through the applicable policy wordings mentioned in your policy, before making any insurance-related decisions.