Service tax on washing of government hospital cloths is it

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2016 Dear sir we have awarded contract by govt. of maharashtra the work of cloth washing in rural hospitals at 20 places inside the govt. hospitals at kolhapur district. The manpower and detergents and chemicals are supplied by us. All cloths are wet washed with water .machines /water is supplied by govt hospital. we charge them per no. RS 14.Does service tax liability arises? If it arises who should pay service tax?And on which amount?

Guest

Guest (Expert)

16 January 2016 There is an exemption available in mega notification which states that service to government in relation to public health, sanitation etc is exempt from tax. But be prepared, the officer will come for dispute. You have to fight hard.

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2017 Thank you sir. In gst this mega exemption for services of wet cleaning of cloths given to state government hospital is continued. we need this new notification. would you please give noti. Regards!

Querist : Anonymous

Querist : Anonymous (Querist)

24 October 2018 please let me know if exemptioin is continued in gst regime.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 Hi!

Regarding your query on **service tax on washing of government hospital cloths**:

### Service Tax Applicability (Pre-GST regime):

* According to the **Mega Exemption Notification No. 25/2012-ST**, **services provided to the government or local authority relating to public health, sanitation, etc., are exempt from service tax**.
* Washing of hospital cloths in government hospitals is generally considered a service relating to **public health and sanitation**.

### So, in your case:

* Your contract for washing clothes in government hospitals **should be exempt from service tax** under the above exemption.
* The service recipient (Government of Maharashtra) or you **should not be liable to pay service tax** on this contract amount of Rs. 14 per cloth washed.

### However:

* As noted, **tax officers sometimes dispute this exemption**, so you need to keep proper documentation and be ready to justify the exemption claim.
* Exemption applies only if the service is directly related to **public health, sanitation, etc., provided to government or local authority**.

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### GST Update (Post GST rollout):

* The exemption **continues under GST** as per the GST exemption notifications on health and sanitation services to government entities.
* The relevant GST Notification can be found under **Notification No. 12/2017 - Central Tax (Rate)** and corresponding State Tax notifications for exempting health-related services to government hospitals.

If you want, I can help you get the exact GST notification reference for this exemption.

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**Summary:**

| Aspect | Pre-GST Service Tax | Post-GST |
| ------------------------------------------ | ----------------------------------------- | --------------------------------------------------------- |
| Service (cloth washing for govt hospitals) | Exempt under Mega Notification 25/2012-ST | Exempt under GST notifications related to health services |
| Liability | No service tax payable | No GST payable |

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If you want the **exact GST notification number** or a copy of the exemption clause, just ask!

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