Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Core healthcare is exempt
GST exempts healthcare services provided by a clinical establishment, an authorised medical practitioner or paramedics — covering diagnosis, treatment and care for illness, injury, deformity or pregnancy. So consultations, procedures and hospital treatment are generally outside GST, which is why most doctors need no GST registration.
What's taxable
Exceptions exist: purely cosmetic or plastic surgery (where not reconstructive/medically necessary) is taxable; hospital room rent above a notified threshold has attracted GST; and non-clinical income — renting out premises, equipment hire, pharma consultancy, or running a taxable retail pharmacy margin — is taxable. So a practice can have a mix. Confirm the current exemption boundaries and room-rent rule.
A worked example
Example: a hospital’s treatment income is exempt, but its cosmetic-surgery wing and a shop it rents out generate taxable supplies — so it registers for those. A pure physician has only exempt income and stays out of GST. Identifying the taxable slice is the key analysis for medical establishments. Our team can map your exempt and taxable supplies.