GST on Ambulance Service: Tax Rate, HSN Code, and Exemptions

GST on ambulance services is a key consideration when understanding how different healthcare services are taxed. Since it falls under healthcare, it often gets some special consideration under GST. This article explains when it is exempt, what tax rates apply, and how codes are used.

GST Exemption on Healthcare Services

Most healthcare services are not charged GST because they are considered essential. According to the rules, health care services provided by hospitals, doctors, or paramedics are exempt. Similarly, ambulance services used for moving patients to receive care also fall under this exemption.

GST Rate and SAC Code for Ambulance Services

Ambulance services are listed under SAC code 999315, which falls in the category of human health and social care. While the standard GST rate for this code is 18%, it is considered 0% (exempt) when the service is for patient transport.

Exemptions for Specific Service Providers

Ambulance services run by the government or private providers working under public health schemes are generally exempt. Even when hospitals outsource to third parties, the services remain exempt if meant for patient care. Charitable ambulance services also benefit from this exemption.

GST for Non-Healthcare Use of Ambulances

When an ambulance is used for purposes other than patient transport, such as rentals for events, it does not qualify for the healthcare exemption. In these cases, GST at 18% is applicable.

Conclusion

In short, GST on ambulance service is not applicable when the service involves patient care. The tax system allows this exemption to make healthcare more affordable. Whether GST applies depends on how the ambulance is used.

For further reading, explore Cleartax blogs on GST for Doctors, HSN Codes, Hospital Room Rent, and Input Tax Credit.