Exempt vs taxable
Healthcare services exempt under entry 74; medicines at 5% / 12%; devices at 5% / 12% / 18%. Per-service classification.
For Healthcare & Pharma
Where every supply is taxed differently.
Exempt healthcare services, taxable diagnostics, GST on medicines, NPPA price ceilings, distributor reconciliation and multi-entity pharma chains. Built for mixed-supply complexity.
What healthcare finance needs
The exempt / taxable line, drawn correctly.
Healthcare services are largely exempt; medicines and devices are taxable; diagnostics sometimes both. The boundary is where the audit notice comes from.
IPD / OPD billing
In-patient bundled bills with mixed exempt/taxable lines. Out-patient with diagnostics and pharmacy splits.
Pharmacy chain ops
Multi-store, multi-state pharmacy chains. Per-store stock, per-state GSTIN, daily reconciliation.
Drug pricing (DPCO)
NPPA price ceilings tracked per scheduled drug. Margin controls applied at sale.
Distributor compliance
Pharma distributors, C&F agents, super-stockists with per-distributor GSTIN, TDS, settlement reconciliation.
Equipment leasing
Medical equipment leasing with operating vs finance lease accounting per Ind AS 116.
Mixed supplies, billed correctly
The bundled bill that makes auditors smile.
A hospital bill has consultation (exempt), surgery (exempt), implant (taxable), diagnostics (mixed), pharmacy (taxable), room rent (taxable above ₹5,000/day under specific rules). OneFinOps applies the right tax to each line, generates the right GST split on a single patient invoice, and reports cleanly on the GSTR-1.
- Per-service classification (exempt / 5% / 12% / 18%)
- Bundled IPD invoices with line-level tax application
- Exempt-service ITC reversal computed automatically
- GSTR-1 split into exempt and taxable supplies cleanly
Pharmacy chain
Per-store, per-state, per-shift.
A pharmacy chain spread across 5 states and 50 stores has 5 GSTINs, 50 daily reconciliations, NPPA price tracking on hundreds of SKUs and a pharmacy stock that moves between stores. OneFinOps gives each store a workspace, each state its own GSTR-1/3B, and the chain a rollup.
- Per-store daily POS reconciliation against bank settlement
- NPPA ceiling-price tracking on every scheduled drug SKU
- Inter-store stock transfers with the right GST treatment
- Multi-state PT for pharmacy staff per state of employment
What healthcare finance teams see
The numbers, after switching.
100% Mixed-supply tax accuracy
< 1 hour Per-store daily reconciliation
−18 days Median DSO improvement
24/7 NPPA price ceiling check
Healthcare FAQ
What hospitals and pharma teams ask before they switch.
How is the exempt / taxable line drawn for hospital services?
Per Entry 74 of GST exemption notification 12/2017, healthcare services by a clinical establishment, authorised medical practitioner or paramedics are exempt. Diagnostics under prescription are exempt. Sale of medicines is taxable (5% / 12%). Implants supplied during surgery are typically composite supply with the surgery (exempt). Room rent above ₹5,000/day is taxable from 18 July 2022. OneFinOps applies the right rule per service line.
How does ITC reversal for exempt supplies work?
Hospitals making both exempt (services) and taxable (pharmacy, devices) supplies must reverse ITC on common inputs proportionate to exempt revenue under Rule 42/43 of CGST Rules. OneFinOps computes the monthly Rule 42 reversal, posts it to the GSTR-3B, and tracks the annual Rule 43 reversal at year-end.
What about NPPA price controls?
Drug Price Control Order 2013 caps prices on scheduled drugs (NLEM). NPPA notifies ceiling prices monthly. OneFinOps tracks the ceiling per SKU per month, validates sale prices against the ceiling, and flags overruns before posting. Required for pharma manufacturers, distributors and chain pharmacies.
Pharma distributor compliance?
Pharma distributors deal with hundreds of SKUs, super-stockists, sub-stockists and C&F agents. OneFinOps handles distributor onboarding (GSTIN, drug licence validation), TDS at 194C / 194H per relationship, settlement reconciliation against distributor settlement reports and the per-distributor outstanding ledger.
Multi-entity pharma chain?
A pharma group might be: a manufacturing entity, a marketing entity, a distribution arm, a contract manufacturing arm. Each is its own entity with its own books, GSTIN and statutory calendar. The group view consolidates with intercompany eliminations on inter-entity sales.
Equipment leasing for hospitals?
Operating lease (most equipment) is expense-as-incurred. Finance lease (rare, but happens for high-value imaging) is capitalised under Ind AS 116. OneFinOps applies the lease classification and posts the right journal entries.
See it on your supply mix.
A 30-minute walkthrough on your hospital, pharma or pharmacy operations.