Medical equipment is essential in the healthcare industry for accurate diagnoses and effective treatments. As India’s Goods and Services Tax (GST) regime evolves, understanding the GST rates and HSN codes for medical equipment becomes vital to businesses and healthcare practitioners. This article provides an overview of GST on medical equipment, including information on the various HSN codes and their respective GST rates.
HSN Code 9018: Medical Instruments and Appliances
HSN Code 9018 includes a diverse range of medical devices and instruments used in various fields like healthcare, surgery, dentistry, and veterinary medicine. This code consists of both sophisticated high-tech equipment as well as everyday medical tools. To ensure you’re meeting your tax obligations accurately, understand the GST rates applied to these items and know which products fall under this category.
Here’s a closer look at HSN Code 9018 and the GST rates associated with different types of medical equipment:
| HSN Code | Description | Examples | GST Rate |
| 90181100 | Electro-cardiographs | ECG Machines | 12% |
| 90181210 | Linear ultrasound scanner | Ultrasound Machines | 12% |
| 90181290 | Other electro-diagnostic apparatus | CMOS Batteries, Thermal Scanners, Glass Beakers, Fiber Optic Transceivers | 12% |
| 90181300 | Magnetic resonance imaging apparatus | MRI Machines | 12% |
| 90181400 | Scintigraphic apparatus | Centrifuge Tubes | 12% |
| 90181910 | Electroencephalography | Electroencephalography | 12% |
| 90181920 | Echo cardiograph | Echo Cardiograph | 12% |
| 90181990 | Other electro-diagnostic apparatus | Treadmills, Cube Testing Machines, Lab Supplies, Oximeters, Fetal Dopplers | 12% |
| 90182000 | Ultraviolet/Infra-red ray apparatus | UV Sterilizers | 12% |
| 90183100 | Syringes, with or without needles | Disposable Syringes, Disposable Syringes | 12% |
| 90183210 | Suture needles | Suture Needles | 12% |
| 90183220 | Tubular metal needles | Tubular Metal Needles | 12% |
| 90183230 | Hollow needles for injection and other medical purposes | Hollow Needles | 12% |
| 90183290 | Other tubular metal needles | Hospital Supplies, 3 Ply Face Masks, 2 Ply Face Masks, Blood Lancets | 12% |
| 90183910 | Catheters (for urine, stool) | Catheters | 12% |
| 90183920 | Cardiac catheters | Cardiac Catheters | 12% |
| 90183930 | Cannulae | Cannulae | 12% |
| 90183990 | Other needles, catheters, cannulae | Incentive, Burettes, Infusion Sets, IV Cannulas, Disposable Gowns | 12% |
| 90184100 | Dental drill engines, combined with other dental equipment | Dental Drill Engines | 12% |
| 90184900 | Other instruments used in dental sciences | Wireless Chargers, Toner Refilling, Dental Kits | 12% |
| 90185010 | Ophthalmoscope | Ophthalmoscopes | 12% |
| 90185020 | Tonometer | Tonometers | 12% |
| 90185030 | Ophthalmic laser | Ophthalmic Lasers | 12% |
| 90185090 | Ophthalmic surgical instruments and appliances | Face Masks, Latex Gloves, First Aid Kits, Gold Rings, Stainers | 12% |
| 90189011 | Blood pressure instruments (sphygmomanometers) | Blood Pressure Monitors, BP Apparatus | 12% |
| 90189012 | Stethoscopes | Stethoscopes | 12% |
| 90189019 | Other diagnostic instruments | Fingertip Pulse Oximeters, Glucometers, Scanner Machines, pH Electrodes | 12% |
| 90189021 | Surgical bone saws, drills, trephines | X-Ray View Boxes | 12% |
| 90189022 | Surgical knives, scissors, and blades | Cutter Blades | 12% |
| 90189023 | Surgical forceps, clamps, clips, needle holders, introducers, cephalotribe bone holding and other holding instruments | Forceps, Clamps | 12% |
| 90189024 | Surgical chisels, gauges, elevators, raptors, osteotome, craniotome, bone cutters | Chisels | 12% |
| 90189025 | Surgical retractors, spatulas, probes, hooks, dilators, sounds, mallets | Retractors, Spatulas | 12% |
| 90189029 | Other surgical tools | Surgical Masks | 12% |
| 90189031 | Artificial dialysis apparatus and haemodialysers (portable/non-portable) | Dialysis Machines | 12% |
| 90189032 | Blood transfusion apparatus including plastic containers/bags | Vacuum Blood Collection Tubes | 12% |
| 90189033 | Haemofiltration instruments | Haemofiltration Instruments | 12% |
| 90189041 | Anaesthetic equipment | Anesthesia Machines, Oxygen Tubing | 12% |
| 90189042 | ENT precision instruments | ENT Precision Instruments | 12% |
| 90189043 | Acupuncture apparatus | Acupuncture Apparatus | 12% |
| 90189044 | Endoscopes | Endoscopes | 12% |
| 90189091 | Hilerial and venous shunt | Hilerial and Venous Shunts | 12% |
| 90189092 | Baby incubators | Baby Incubators | 12% |
| 90189093 | Heart-lung machines | Heart-Lung Machines | 12% |
| 90189094 | Defibrillators | Defibrillators | 12% |
| 90189095 | Fibrescopes | Fibrescopes | 12% |
| 90189096 | Laparoscopes | Laparoscopes | 12% |
| 90189097 | Nephrostomy/Lithotripsy instruments | Nephrostomy Instruments | 12% |
| 90189098 | Apparatus for nerve stimulation | Nerve Stimulation Apparatus | 12% |
| 90189099 | Other surgical instruments and appliances (including veterinary) | Ventilators, Surgical Gowns, Oxygen Cylinders, Medical Consumables | 12% |
GST on Used Medical Equipment
When it comes to secondhand medical equipment, the GST rate is typically the same as for new equipment. However, the actual impact of GST on used items may vary depending on other factors such as depreciation and condition. For the majority of transactions involving used medical equipment, a standard GST charge of 12% applies. It is best to speak with tax professionals or review the most recent GST notifications for any specific exemptions or adjustments.
Custom Duty on Medical Equipment
Custom duty on medical equipment after GST in India is a significant factor when importing medical equipment into India. Duty charges may vary depending on the type of equipment and the applicable GST. Customs duties are typically computed based on the product’s worth, with GST added on top. For accurate and up-to-date information on customs duties, go to the most recent customs notifications or speak with a customs specialist.
GST Compliance for Medical Equipment Suppliers
GST compliance is critical for both medical equipment suppliers and manufacturers. This involves:
Proper classification: To apply the relevant GST rate, ensure that medical equipment is accurately classified using the appropriate HSN code.
Invoicing and Documentation: Provide correct invoices and documentation for all medical equipment transactions, including GST information. This is essential for claiming input tax credits and staying compliant during audits.
Input Tax Credit (ITC): Medical equipment suppliers can claim an input tax credit on GST paid for inputs used in the manufacturing of medical apparatus. To be eligible for this credit, you must provide proper documentation and follow GST requirements.
Filing GST Returns: GST returns must be filed on time. To prevent penalties and litigation, ensure that all medical equipment sales and purchases are appropriately documented on GST returns.
Also Read: GST Rates & HSN Codes on Salts & Sands- Chapter 25
Conclusion
Staying informed about GST on medical equipment is essential for effective cost management and compliance. Medical devices may be eligible for GST exemptions or concessional rates, depending on government updates. Regularly reviewing notifications from the GST Council ensures you remain current with any changes that could affect your business.
Government schemes may offer reduced GST rates or subsidies for specific medical equipment. Keeping accurate records of transactions and GST calculations is vital for smooth audits and adherence to regulations. Given the complexity of GST rules, consulting with a tax professional or GST expert can provide tailored guidance and help ensure that your operations comply with current regulations.
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FAQs
What is the GST rate for medical equipment in India?
Most medical equipment in India is subject to the 12% GST rate. This rate applies to a wide range of medical equipment and instruments used in the medical, surgical, dental, and veterinary fields.
How are exports of medical equipment treated under GST?
Medical equipment exported from India is subject to a 0% GST rate. Exporters can also claim a refund on the input tax credit for materials used in manufacturing the medical equipment.
How can I check the latest GST rates for medical equipment?
You can refer to the official GST website or consult a tax expert for the latest GST rates for medical equipment in India.
Are there any exemptions or concessions on GST for medical equipment?
Certain medical equipment and devices are exempted from GST or qualify for concessional rates. Check the official GST guidelines or consult a tax expert for more information.