GST for medical bills: Iras replies

We thank Mr Pang Kim Phong ("Why no subsidy for GST?"; May 23, and "GST computation not consistent"; last Wednesday) and Mr Christopher Leong Chi How ("GST levied on services supplied"; May 26, and "No inconsistency in GST computation"; last Thursday) for their letters on the goods and services tax (GST) computation for medical bills.

GST-registered organisations, including hospitals and clinics, have to charge GST on the value of their goods and services.

For government-funded public hospitals and polyclinics that are providing subsidised medical services, GST on these subsidised medical services is absorbed by the Government.

Therefore, subsidised patients in public hospitals and polyclinics do not pay any GST.

On the other hand, the GST on the goods and services provided by GST-registered private clinics is not absorbed by the Government. Patients who are eligible for subsidies granted under government-funded healthcare schemes will receive subsidies that help defray their total medical bills at participating private clinics.

This article was first published on June 3, 2015.
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