GST billing for Indian clinics — the complete 2026 guide

Are medical services GST exempt?

Yes — healthcare services provided by a clinical establishment, an authorised medical practitioner or paramedics are exempt from GST under Schedule VI of the CGST Act.

What IS taxable at your clinic?

• Sale of medicines and drugs (5% or 12% GST depending on category)
• Medical devices and equipment sold to patients
• Cosmetic and aesthetic procedures (non-therapeutic)
• Health check packages (debated — some are exempt, some attract 18%)
• Room charges above ₹5,000/day in private hospitals (18% GST)
• Ambulance services provided by private operators (not hospital-owned)

GST Registration — When is it required?

If your clinic's annual turnover from taxable supplies (medicines, devices etc.) exceeds ₹20 lakh (₹10 lakh for special category states), GST registration is mandatory.

Even if your consultation revenue is GST exempt, if you sell medicines alongside, you need to track that revenue separately and register if it crosses the threshold.

GST Invoicing Best Practices for Clinics

1. 1Issue separate line items for consultation (exempt) and medicines (taxable)
2. 2Show GST registration number (GSTIN) on all invoices
3. 3Use HSN/SAC codes — SAC 999312 for outpatient consultation
4. 4File GSTR-1 monthly or quarterly (based on turnover)
5. 5File GSTR-3B monthly for tax payment
6. 6Maintain invoice records for minimum 6 years

Common GST Mistakes Clinics Make

• Charging GST on consultation fees (wrong — it's exempt)
• Not registering for GST when medicine sales cross threshold
• Mixing consultation and medicine revenue on same invoice line
• Missing HSN/SAC codes on invoices
• Not claiming Input Tax Credit on clinic equipment purchases

Input Tax Credit (ITC) for Clinics

If your clinic is GST registered, you can claim ITC on GST paid for business inputs like medical equipment, office supplies, software subscriptions and renovation costs — as long as these are for the taxable portion of your business.