Hospital bills don't just comprise the treatment received; other components that support the recovery, such as diagnostic tests, doctor consultation, room rent, etc., add up too. Of these, one of the major contributors is the hospital room rent. When you add GST on the hospital room rent, the total bill amount increases further, adding to your out-of-pocket expenses.
Currently, a 5% GST rate is applied on the hospital room rent above ₹5,000, with ICU and critical care units being exempted from the GST rate. While room rent may still attract GST, your healthcare can remain affordable and free from unexpected expenses with a reliable health insurance plan. Zero GST on health insurance makes it a smarter shield against rising medical costs and lowering out of pocket expenses during critical times.
What is the GST on Hospital Room Rent?
As per the GST Council, hospital room rent GST is 5%, but only if the daily rent for a non-ICU room exceeds ₹5,000. If the room costs ₹5,000 or less per day, no GST applies. Importantly, ICU and other critical care units (like NICU or CCU) are fully exempt from GST, no matter the rent amount.
While your health insurance may cover room rent (depending on your policy), it's good to be aware of this tax when estimating out-of-pocket expenses.
When is GST Applicable on Hospital Room Rent Tariff?
The GST rate depends on the type of room, the per-day tariff and the type of hospital you are being treated in. Here is how the GST is applicable in different conditions.
|
Room Type |
GST |
Explanation |
|
Non-ICU Room |
5% GST (if rent > ₹5,000/day) | For a non-ICU room that
exceeds ₹5,000, 5% GST is added on the full rent.
No GST if it's ₹5,000 or less. |
|
ICU / Critical Care Rooms (CCU, NICU, etc.) |
0% | Even if room rent is high, ICU and other critical care units remain fully
exempt from GST. |
|
Government Hospitals |
0% (Generally Exempt) | Rooms in government or government-aided hospitals are typically exempt from GST, even if rent exceeds ₹5,000, depending on state policies. |
|
Hospital Packages (room rent included) |
Usually Exempt | If your hospital bill is a package (like surgery + medicines + room) and the room rent isn't shown separately, GST usually doesn't apply. |
Note: Note that these rates and GST rules are subject to change over time. Please check the latest GST rules and updates.
Impact of GST on Hospital Room Rent
-
Higher hospital bills: If your room costs more than ₹5,000/day (non-ICU), a 5% GST is added to the rent, increasing the cost of your stay.
-
Possible out-of-pocket costs: If your insurance covers room rent only up to ₹5,000/day, you may have to pay the extra amount plus GST yourself.
-
Hospitals don't get GST refund: Since hospitals can't claim this tax back, they usually pass the full cost on to patients.
-
No GST on ICU rooms: Rooms in the ICU, NICU, or other critical care units are always tax-free, which helps reduce your cost in serious situations.
-
Check your bill details: If your treatment is part of a package, GST may apply only if room charges are shown separately.
How Reliance Health Insurance Helps You?
When you choose a Reliance General health insurance plan like
Health Gain or
Health Infinity, you get coverage for hospitalisation costs, including room rent, doctor fees, diagnostics, medicines and more. We offer options with no room rent capping, so you can choose a private or premium room without worrying about sub-limits.
With the
GST on health insurance premiums reduced to
0% from 22 September 2025, your base premiums are lower. This means add-ons like waiving room rent limits or unlimited restore benefits become more accessible and cost-effective now.
Our
health insurance plans support cashless treatment at its 10,000+ network hospitals, and offer flexible add-ons (e.g.
OPD cover, critical illness) to tailor your coverage. So, understanding the hospital room rent GST along with our broader protection helps you choose a better plan that allows you to opt for a freedom in hospital room choice.
Frequently Asked Questions
How is GST on hospital room rent calculated?
GST is charged at 5% on the full room rent amount if the non-ICU room rent exceeds ₹5,000 per day. For example, if the room costs ₹6,000/day, 5% GST will be charged on the room rent, i.e., ₹6,000 * 5% = ₹300.
Is GST charged on rent paid to unregistered hospitals?
No. If the hospital has not completed its registration process or does not have a GSTIN number, it cannot legally charge GST on any services.
Is the GST rate on hospital room rent tariff different in different states?
No, the GST rate is the same across all states in India. GST is a national tax, so the 5% rate on non-ICU room rent above ₹5,000/day applies uniformly across the country.