Healthcare
Most healthcare services by clinical establishments are exempt from GST, but related activities such as pharmacy sales can be taxable. Doctors and clinics also need books that support their income tax returns and any bank or partnership arrangements.
What we help with
- Income tax for doctors and clinic owners, including the presumptive option for professionals
- Advice on which supplies are GST-exempt and which are taxable
- Bookkeeping for clinics, nursing homes and diagnostic centres
- TDS on payments to visiting consultants and contractors
Points to watch
- 1Pharmacy and other non-clinical sales may need GST registration even when consultations are exempt.
- 2Payments to visiting doctors and consultants usually attract TDS.
- 3Medical professionals above the prescribed income have to maintain books of account in the specified form.
- 4Partnership or revenue-sharing arrangements between doctors should be documented in writing.
General points, not advice for your case. Limits and dates change; we confirm what applies to you.
GST: what is exempt and what is not
Healthcare services provided by clinical establishments and medical professionals are largely exempt from GST. Related supplies are not always exempt: a pharmacy attached to a clinic, cosmetic procedures, or non-medical services may be taxable. A clinic can therefore need GST registration for part of its activity even though consultations are exempt.
Income tax for doctors and clinics
Doctors in individual practice can often use the presumptive taxation scheme for professionals if their receipts are within the limit, declaring a prescribed percentage as income. Clinics, nursing homes and diagnostic centres usually need proper books and, above the limits, a tax audit. Medical professionals above prescribed receipts must maintain books in the specified form.
Payments to consultants and staff
Hospitals and clinics often pay visiting doctors, technicians and contractors. Most of these payments require TDS, and the nature of the arrangement (salary, professional fee or contract) decides which rules apply. Writing the arrangement down avoids disputes and tax problems later.
Records worth keeping
- Patient billing summaries reconciled with bank and card receipts.
- Purchase records for medicines and consumables.
- Agreements with partners, visiting consultants and landlords.
Running a business in healthcare?
Call during office hours, or send a WhatsApp message describing what you need.
- No documents needed for the first call
- Hindi or English