The Healthcare GST Complexity
Healthcare in India has one of the most complex GST structures. Medical services are largely exempt, but:
- Pharmacy sales: taxable at 12% (medicines) or 18% (OTC products)
- Diagnostics: 12% GST
- Room charges: exempt (if it's a hospital room)
- Cafeteria/food services: 5% GST
- Equipment rental: 18% GST
- Doctor consultation fees: exempt
With 47 different revenue streams across 3 hospitals and 200+ visiting doctors, getting the classification right was a significant compliance challenge.
Our Solution
TaxEasyy's healthcare compliance team spent 2 weeks conducting a complete revenue stream audit, mapping each line item to the correct HSN/SAC code and GST rate. We then built custom rules into their accounting system to auto-classify transactions.