Complete GST Billing Guide for Doctors & Clinics in India
GST billing is one of the most confusing aspects of running a clinic in India. Which services are exempt? What HSN codes should you use? Do you need to charge GST on consultation fees? This guide answers every common question for doctors and clinic owners.
Disclaimer
This article is for informational purposes only and does not constitute tax advice. Please consult a qualified chartered accountant for your specific situation.
Are Healthcare Services Exempt from GST?
Yes, most core healthcare services are exempt from GST under SAC code 9993. This includes:
- ✓Consultation fees charged by doctors
- ✓Diagnosis and treatment services
- ✓Services provided by clinical establishments (clinics, hospitals)
- ✓Inpatient services including room, food, and nursing
- ✓Ambulance services
What IS Subject to GST?
While clinical services are exempt, some items and services in a clinic do attract GST:
| Item/Service | GST Rate | HSN/SAC |
|---|---|---|
| Medicines sold from pharmacy | 5% or 12% | 3003/3004 |
| Medical equipment/devices | 12% | 9018 |
| Cosmetic/elective procedures | 18% | 9993 |
| Renting of rooms (above Rs 5,000/day) | 5% | 9963 |
| Health checkup packages | Exempt* | 9993 |
Invoice Requirements for Clinics
Even if your services are GST-exempt, it is good practice to issue proper invoices. A compliant invoice should include:
- •Clinic name, address, and GSTIN (if registered)
- •Patient name and contact
- •Invoice number (sequential)
- •Date of service
- •Description of services with SAC/HSN codes
- •Amount with GST breakup (or marked as exempt)
- •Payment mode
Do You Need GST Registration?
If your clinic provides only exempt healthcare services, GST registration is not mandatory regardless of turnover. However, if you sell medicines from a pharmacy or provide taxable services, you need registration if your annual turnover exceeds Rs 20 lakh (Rs 10 lakh in special category states).
How to Automate GST Billing
Manual GST billing is error-prone and tedious. With Zospital CRM, invoices are generated automatically from consultations with the correct SAC codes, GST rates, and clinic details pre-filled. You can split billing between exempt consultation fees and taxable pharmacy items. PDF invoices can be sent to patients via WhatsApp instantly.