# Exemption: Health Care Services
## What is a 'Health Care Service'?
Health care services means:
1. Diagnosis, treatment or care for illness, injury, deformity, abnormality, or pregnancy (including IVF technique) — provided under any recognised medical system.
- Mnemonic: AYUSH NA → Allopathy, Yoga, Unani, Siddha, Homeopathy, Naturopathy, Ayurveda.
2. Transportation of patients to and from clinical establishments.
## What is NOT a Health Care Service (hence taxable)
- Hair transplant, cosmetic or plastic surgery — unless done to restore/reconstruct anatomy or function due to defect, abnormality, injury or trauma.
- Services by a cord blood bank for preservation of stem cells.
## Who can provide exempt health care services?
| Provider | Exempt? |
|---|---|
| Clinical establishment (hospital, nursing home, clinic, pathological lab) | Yes |
| Authorised medical practitioner | Yes |
| Paramedics (nursing staff, physiotherapists, technicians, lab assistants) | Yes |
| Veterinary clinic (animals/birds) | Yes |
Ambulance services by Government or private entity for transport of patients — Exempt.
## Three Key Notes on Hospital Services
### (i) Room rent for in-patients
- General rule: Room provided to in-patient → Exempt.
- Exception: If room rent > ₹5,000 per day → Taxable.
- Carve-out: Rooms in critical care units (ICU / CCU / ICCU / NICU) → Always exempt, regardless of charges.
### (ii) Doctor / Consultant / Technician → Hospital
- Service provided by such persons to the hospital (whether employee or not) is Exempt.
- Therefore both the amount retained by the hospital and by the doctor/consultant are exempt.
### (iii) Food supplied by hospital
- To in-patients (as part of treatment plan) → Exempt.
- To out-patients or visitors → Taxable.
## Quick Decision Framework
```
Is service for diagnosis/treatment/care in AYUSH NA system?
- No -> Taxable (e.g., Reiki, cord blood bank)
- Yes -> Provided by recognised provider?
- No -> Taxable
- Yes -> Check room rent / cosmetic carve-outs
```