Health and wellness

GST invoice format for a medical oxygen supplier

Medical grade oxygen under HSN 2804 40 10 is taxed at 5% since 22 September 2025, down from 12%. An oxygen supplier's invoice must separate the gas from cylinder deposits, cylinder rent and delivery, and record cylinder serial numbers, capacity, fill pressure and purity. Hospitals need batch and purity certificates, and loads above ₹50,000 need an e-way bill. Concentrators and therapy apparatus under 9019 are also 5% when sold or rented to home patients.

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Sample medical oxygen supplier invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Medical grade oxygen, B-type cylinder refill (6.8 m³)	28044010	20 CYL	350.00	7,000.00	5%
Medical grade oxygen, small cylinder refill (1.5 m³)	28044010	10 CYL	150.00	1,500.00	5%
Oxygen concentrator 5 LPM (sale)	9019	1 PCS	42,000.00	42,000.00	5%
Oxygen flow meter with humidifier	9019	2 PCS	1,800.00	3,600.00	5%
Taxable value				₹54,100.00
GST (CGST + SGST, or IGST if inter-state)				₹2,705.00
Invoice total				₹56,805.00

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a medical oxygen supplier invoice needs

Cylinder serial numbers: Each cylinder is tracked for safety testing and return. Listing serial numbers on the invoice records which cylinders are with which customer.
Capacity and fill pressure: Oxygen is sold by cylinder size or cubic metres. Stating capacity, such as 46.7 litre water capacity, and fill pressure shows how much gas was supplied.
Purity and batch certificate: Medical oxygen must meet pharmacopoeia purity. Batch and purity references on the invoice satisfy hospital audits.
Drug licence for medical gases: Medical oxygen is a drug. Print your manufacturing or sale licence on the invoice.
Cylinder deposit: Refundable deposits are not taxable consideration. Show them separately from the gas price.
Empty cylinders returned: Track empties returned on each delivery to reconcile cylinder holding with each customer.
Delivery vehicle and time: Hospitals log every oxygen delivery against their stock register. Vehicle number and delivery time on the invoice help the hospital's store reconcile cylinders received, and they are also needed for the e-way bill when the value exceeds the limit.
Hospital store acknowledgement: A signed or stamped acknowledgement from the hospital store, with count of full and empty cylinders exchanged, is the best proof of delivery when payment or cylinder counts are disputed months later.

Standard GST invoice fields

Rule 46 of the CGST Rules applies to every tax invoice, including this one:

Supplier name, address and GSTIN
Consecutive invoice number (max 16 characters, unique for the year)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a medical oxygen supplier

Medical oxygen is 5%, industrial oxygen is not

Medical grade oxygen under tariff item 2804 40 10 moved from 12% to 5% from 22 September 2025. Industrial oxygen used for welding and cutting is a different product and was not part of this change. Suppliers who fill both must keep separate item masters and document which cylinders are filled with medical grade gas, because using the medical rate for industrial supplies would underpay tax. The purity certificate supports the classification. Print the grade clearly on the line description, for example 'Oxygen IP medical grade', so that the classification is visible on the face of the invoice.

Cylinder deposits and rent

A refundable deposit taken when a cylinder is lent is not consideration for a supply, so no GST is charged on it when collected. If the deposit is forfeited because the cylinder is lost or damaged, it becomes consideration and tax is due then. Cylinder rent charged periodically is a separate service; rental of goods is taxed at the rate applicable to the supply of the goods themselves. Show rent as its own line. Keep a cylinder holding statement for every customer and share it monthly, because unreturned cylinders are the largest hidden loss in this trade.

E-way bills on every load above ₹50,000

Bulk supplies of oxygen to hospitals often exceed ₹50,000 per trip, requiring an e-way bill before movement. Returning empty cylinders is not a supply, but movement of empties should be on a delivery challan. Hospitals in emergencies may need deliveries at night; generate the e-way bill from the mobile app to avoid delays. Also record the vehicle number in Part B before the cylinders leave the filling plant.

Supplies to hospitals cannot be credited

Hospitals use oxygen for exempt treatment and cannot claim credit. They compare tax-inclusive prices, and the drop to 5% reduces their cost. Pass on the change clearly on your price list. Government hospitals may deduct TDS at 2% on contracts above ₹2.5 lakh; reconcile TDS credits monthly.

Concentrators and therapy apparatus

Oxygen concentrators, flow meters, masks and other oxygen therapy apparatus under 9019 moved from 12% to 5%. Other breathing appliances under 9020 also went to 5%. When you rent concentrators to home patients, the rental is taxed at the same rate as a sale of the concentrator. Keep serial numbers for each rented unit. Concentrator invoices should also carry warranty terms and the serial number of each unit.

Licensing and safety

Medical oxygen supply requires a drug licence and, for storage, PESO licensing for compressed gases. Print licence numbers on invoices. Hospitals' purchase departments and inspectors check them, and missing details can delay payment.

Common billing mistakes

Billing industrial oxygen at the medical grade 5% rate.
Charging GST on refundable cylinder deposits at collection.
Moving full cylinders worth over ₹50,000 without an e-way bill.
Omitting cylinder serial numbers, so cylinders go missing without a trail.
Not printing the drug licence for medical gas on invoices.

Medical oxygen supplier GST invoice: FAQ

What is the GST rate on medical oxygen?

Medical grade oxygen under 2804 40 10 is taxed at 5% from 22 September 2025.

Is GST charged on oxygen cylinder deposits?

Not on refundable deposits. If the deposit is forfeited, GST becomes payable.

What is the GST rate on oxygen concentrators?

Oxygen therapy apparatus under 9019 is 5% from 22 September 2025.

Do I need an e-way bill for oxygen cylinders?

Yes, when the consignment value exceeds ₹50,000.

Is cylinder rent taxable?

Yes, rental of goods is taxed at the rate applicable to the supply of the goods.

Sources: GST Council — PIB press release on 56th Council rate rationalisation (3 Sep 2025) · CBIC — Tax information portal (rate and exemption notifications)

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