Most clinical care a doctor provides is exempt from GST. But the moment a clinic sells products, runs a pharmacy, or crosses the registration threshold, GST shows up on the invoice, and getting it wrong is an audit risk. This guide covers the parts a clinic actually needs.
Is healthcare exempt from GST?
Services by a clinical establishment, an authorised medical practitioner, or paramedics are exempt from GST under the healthcare-services exemption. That covers consultations, diagnosis, and treatment.
What is not automatically exempt: over-the-counter product sales, certain cosmetic procedures, and goods sold alongside care. If your clinic sells any of these, those line items can attract GST even though consultations don't.
When does a clinic need a GSTIN?
A GST registration (GSTIN) is generally required once aggregate turnover crosses the threshold in the CGST Act. The threshold differs for goods vs services and by state category. A purely exempt practice may not need one; a clinic with taxable product or pharmacy revenue typically does.
This is general information, not tax advice. Confirm your clinic's position with a chartered accountant. Thresholds and rates change.
CGST + SGST vs IGST on a clinic invoice
Once you're registered and billing a taxable item:
- Same-state patient → the tax splits into CGST + SGST (half each).
- Inter-state patient → a single IGST at the combined rate.
The split is driven by the place of supply, not by what you'd prefer. So the invoice has to know the patient's state.
HSN / SAC codes
Taxable goods carry an HSN code; services carry a SAC code. A compliant tax invoice lists the code against each line item along with the rate.
How Avinya Plus handles this
In Avinya Plus, each service or product in your catalogue carries its own price, tax rate, and HSN/SAC code. Once your clinic has a GSTIN, tax auto-splits into CGST+SGST for same-state patients or IGST for inter-state ones, and you print an A4 tax invoice or an 80mm thermal receipt. No manual tax math at the counter.
Sources
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