The health care sector is one of the biggest sectors in India, is regulated by the Indian Medical Association (IMA). Doctors, apart from engaging themselves in healthcare services by working as doctors and consultants in hospitals, or running their own clinic etc. can do a lot of other activities. For instance, they can set up camps in rural areas, and sometimes are also involved in any nonmedical activities like education etc. Therefore, the taxability depends on what all activities a doctor is involved in. The article below illustrates the same.
Page Contents
- Exemptions of health care services
- A. Health Care Services
- B. Clinical Establishment
- C. Authorized Medical Professional
- D. Paramedics
- Whether doctors are required to register under GST
- 1. Where the doctors are engaged only in healthcare services
- 2. Where the doctors are also engaged only in non-healthcare services
- Compliance to be met after GST Registration
Exemptions of health care services
Notification No. 9/2017 has exempted healthcare services.
It exempts Health care services by a clinical Establishment or Authorized medical practitioner or para medics.
Let’s see what these terms mean & include:
A. Health Care Services
Health care services implies to improvement and maintenance of physical and mental health. Application of all the health care services in any recognized system of medicines in India except hair transplant, cosmetic surgery or plastic surgery and the ones done due to congenital defects, development abnormalities, trauma or injury are exempt from the ambit of GST.
B. Clinical Establishment
It includes any hospital, nursing home, maternity clinic, dispensary, clinic, sanatorium, pathology, or any other diagnostic or investigative services owned and controlled by-
- Government or a department of government,
- A trust,
- A corporation including society,
- Local authority, and,
- Any single medical practitioner.
Clinical establishments do not include any establishments owned, controlled and managed by the armed forces.
C. Authorized Medical Professional
Any practitioner registered with any council of recognized system of medicine or any recognized medical law in India and having a qualification to practice in any recognized system of medicine in India, excluding hair transplant or domestic surgery are exempt from paying GST in India.
D. Paramedics
Any trained professional such as a nursing staff, physiotherapist, technicians, lab assistant are accountable for their services when provided independently, are therefore exempt.
Whether doctors are required to register under GST
Registration on the basis of turnover
GST law requires registration on the basis of turnover. It provides a threshold turnover exemption up to Rs 20 lakh from registration.
While determining the turnover for threshold exemption, one has to see the total turnover (exempt + non-exempt)
Let’s see whether doctors would be required to register under GST under the following cases:
1. Where the doctors are engaged only in healthcare services
Provision of Health care services, as explained earlier, is an exempt service and since the services are exempt, it also exempts from registration. So, the doctors who are engaged only in exempt health care services are providing only exempt services and thus they aren’t required to register under GST.
2. Where the doctors are also engaged only in non-healthcare services
Non-health care services aren’t exempt under GST. A Doctor providing both health care & non-health care services has to consider the total turnover from health care & non-health care services. Thus, if the total turnover from all services exceeds Rs 20 lakhs, GST registration would be required.
For instance, A doctor is practicing in a hospital with a turnover of 18 lakhs and also selling educational videos online with a turnover of 7 lakhs. Here, while the turnover from practice is 18 lakhs. In order to determine whether GST registration is required, one needs to see the total turnover i.e. turnover from practice + turnover from educational videos, which is this case is 25 lakhs. So, GST registration would be required.
Compliance to be met after GST Registration
Once you have registered yourself under GST whether voluntarily or compulsory, it is mandatory to file your GST Return. If you fail to do so, you would be liable for some penalty.
A registered dealer has to file a GST Return that includes-
- Purchase
- Sales
- Output GST (on sales)
- Input Tax Credit (GST paid on purchase)
A registered person has to file GSTR 3B monthly and GSTR-1 quarterly (for turnover up to 1.5 crores)
A GST registered doctor has to report both the exempt & non-exempt turnover in the return and special care has to be given while availing input credit as credits owing to exempt services won’t be available.
Disclaimer: The above post is only for the purpose of academic discussion and should not be construed as any legal opinion in any matter whatsoever.
The author is a CA in practice at Delhi and can be contacted at: E-mail: [email protected], Mobile: +91-9811741451
Author Bio
“‘exemption from excluding hair transplant or domestic surgery are exempt from paying GST ii India'” i think it should ve cosmetic surgery
CAs, Consulting Medical Dr.,Nurses, Physiotherapists, Paramedical, Consulting Engineers & Lawyers(Advocates) are exempt from GST since they are not selling any product or selling any service. They are rendering services which are professional in nature & they are registered with Gov’t Councils like State Medical Council, State Bar Council, Local Municipality
Hello Abhinandan,
I am a General Medical Practitioner and run a clinic where I give consultations and dispense medicines[ that which I purchase] as a part of my treatment.
Recently I have received a show-cause notice for demand of Rs.267463/- for the financial years 2016-17 and 2017-18. My income tax returns Profit and loss for these years are as follows:-
FY 2016-17:- Rs.1358540/-;
FY 2017-18:- Rs. 424544/-.
I do not have any other non-healthcare services in my clinic. I do dabble in share trading occasionally.
According to your article, I have noted that clinical establishments are not required to register for GST. How do I reply to this show cause notice?
I have to give a reply by 18th November 2021.
Can you please help me?
Regards,
Dr.K.P.Vasudeva Rao
I am a practicing physician. I also deliver lectures in seminars arranged by pharmaceutical companies and also arrange free medical camps with financial assistance by pharmaceutical companies. Are all these activities falls under GST Act, if total income exceeds 20 lakhs rupees
HI
GST IS APPLICABLE ON SERVICES PROVIDED SKIN & HAIR SPECILIST DOCTOR, IF APPLICABLE THEN WHAT IS THE LIMIT FOR GST REGISTRATION HE IS ALSO SELLING MEDICINES
A dentist doctor served with GST notice for GST registration. The annual turnover is less than Rs.20 lakhs. Sir can you mention the points to be noted in the filing a reply to Tax officer.
Thanks
I have consulted a skin specialist doctor regarding to my pimples problem I’m facing with. And the doctor was asked me to take treatment to get back to normal.Im under treatment now. Till the date I had five session on it and the doctor never gave me bills of those five treatment sessions. I’m I supposed to ask doctor to give me the bills of those treatment of sessions I have paid or not?If the doctor doesn’t gives me the bills with GST can I lodge a complain towards the hospitals or not?
Hi sir, i am giving radiological services. We have to give a lots of amount as GST while purchasing machines (which are very costly) but we don’t get any input. Also i am giving GST on rent for clinical work which also hurts a lot.. can you guide me how to save GST.
Want to know about GST when paid or not paid for healthcare services.
Hello, my wife is an practicing Homoeopathic Doctor. We are planning to start a business in her name, being a practicing Doctor of homoepathy, can she start any other business? We wanted to apply for GST number.
PS. The business is non-medico
Thank you for the to the point information. Can u plz also elaborate on ayurvedic , homeopaths and nutritionists / dieticians
Rs. 20 lakh is amended and it is now Rs. 40 lakhs.