Guide
Most clinic invoices are for health care services, and those are exempt from GST under a notification of the Central Government. This guide says what the notification covers, what it leaves out, and how Yuktii treats invoices. It is a plain-language summary and not tax advice.
Buyer checklist
Under Sl. No. 74 of Notification No. 12/2017-Central Tax (Rate), dated 28 June 2017, health care services by a clinical establishment, an authorised medical practitioner or para-medics are exempt from central tax, at a nil rate. The notification is published by the Central Board of Indirect Taxes and Customs (link under References).
The notification defines health care services as any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, and includes transporting the patient to and from a clinical establishment. In plain terms: consultation, examination, procedures and treatment by a clinic or a medical practitioner are what the exemption is about.
The definition does not include hair transplant or cosmetic or plastic surgery, except when it is undertaken to restore or reconstruct anatomy or functions of the body affected by congenital defects, developmental abnormalities, injury or trauma. A clinic that offers cosmetic procedures should not assume they are exempt.
The exemption covers health care services. A clinic may also sell goods, such as medicines or products. Those are a different kind of supply, and how they are taxed is a question for your accountant, who can also tell you whether you need to register.
In Yuktii, an invoice whose every line is linked to a treatment is shown as GST (Exempt) with no tax charged. Any other invoice, including one for a consultation fee alone or a mix of items, applies the tax rate set for the clinic, which the clinic can set to zero. The clinic's GST number is stored on the clinic record. Yuktii does not split tax into CGST, SGST and IGST and does not print HSN or SAC codes, and it does not decide whether something is taxable; that is for the clinic and its accountant.
Whether an invoice carries tax or not, keep an invoice per visit with the patient, the service, the amount and the payment. Yuktii links invoices to treatments and tracks payments and pending balances, so the record is there when the accountant asks.
The notification linked below is the original of 28 June 2017. Tax notifications are amended, so check the current position with the Central Board of Indirect Taxes and Customs or your chartered accountant before you decide how to invoice.
Health care services by a clinical establishment, an authorised medical practitioner or para-medics are exempt from central tax under Sl. No. 74 of Notification No. 12/2017-Central Tax (Rate), dated 28 June 2017. Check the current notification with your accountant.
The definition of health care services does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or reconstruct anatomy or functions of the body affected by congenital defects, developmental abnormalities, injury or trauma.
The exemption is for health care services. Goods sold by a clinic are a different supply, so ask your accountant how they are taxed.
Not on an invoice where every line is linked to a treatment: it shows GST (Exempt) with no tax charged. Other invoices, including consultation-fee-only invoices, apply the clinic's tax rate, which can be set to zero.
No. Yuktii applies a single tax rate to invoices that are not exempt and does not print CGST, SGST, IGST or HSN or SAC codes.
No. It summarises a published notification. Confirm your position with a chartered accountant.
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