GST on consultation fees
and clinic services.

The short answer

Consultation fees charged by a doctor or a clinic for treating patients are exempt from GST. The exemption, in Notification 12/2017 (Central Tax – Rate), covers “health care services” provided by a clinical establishment, an authorised medical practitioner or para-medics, in any recognised system of medicine. A clinic whose only income is treating patients does not charge GST on its fees and, if it makes only exempt supplies, generally does not need to register for GST at all.

The longer answer is that a few things clinics sell are not “health care services”, and that the exemption has a cost of its own. This page is a plain-language summary, not tax advice; confirm your own position with your chartered accountant.

What is exempt, and what is not

Exempt

• ✓Consultation fees, in the clinic or by video, for diagnosis, treatment or care of illness, injury, deformity or pregnancy.
• ✓Procedures and investigations that are part of treatment, and the medicines and consumables supplied to an admitted patient as part of that treatment.
• ✓Ambulance services for patients.

Taxable

• ✓Cosmetic and plastic surgery and hair transplants, unless they restore or reconstruct anatomy after injury, trauma, a congenital defect or a developmental abnormality.
• ✓Room rent above ₹5,000 a day for an admitted patient (excluding ICU, CCU, ICCU and NICU) in a clinical establishment, taxed at 5% without input tax credit since 18 July 2022.
• ✓Medicines sold over the counter to outpatients by the clinic’s pharmacy: a sale of goods, taxed at the medicine’s rate.
• ✓Non-medical income such as renting out space, sponsored events or selling products.

The cost of being exempt

A clinic making exempt supplies cannot claim input tax credit on what it buys. The 18% GST on software subscriptions, equipment, rent or consultants is a cost, not a credit. Treatlly’s plans include 18% GST, itemised on every invoice, so the amount is at least visible.

Receipts, invoices and what the patient sees

Even without GST, give every patient a receipt: the clinic’s name and address, the doctor, the date, the service and the amount. Clinics with taxable income alongside exempt consultations need a GST registration once their taxable turnover crosses the threshold, and then issue tax invoices for the taxable part and bills of supply for the exempt part.

If patients pay online, keep the payment gateway charge separate from the fee in your records. On Treatlly the clinic can absorb the gateway charge or show it as a convenience fee before the patient pays; the consultation fee itself settles to the clinic’s bank account and Treatlly takes no share of it. Every online payment produces a receipt on the clinic’s letterhead. See practice management software for how fees, refunds and settlements are tracked.

Does a doctor need GST registration?+

Not for exempt consultation income alone. Registration is required once taxable supplies — cosmetic procedures, pharmacy sales to outpatients, rental income and the like — cross the registration threshold, or if you want to claim credit on taxable income.

Is GST charged on video consultation fees?+

No. A video consultation is still a health care service by a medical practitioner, and the mode of delivery does not change the exemption.

Why does my clinic software subscription carry 18% GST?+

Software is a taxable service. Treatlly’s ₹2,999, ₹5,999 and ₹9,999 monthly plans include 18% GST, shown separately on the invoice. If your clinic is GST-registered and makes taxable supplies, your accountant will advise how much of it can be claimed.

Do consultation fees collected online change anything?+

No. The fee is the same exempt service whether it is paid at the counter or by UPI while booking. The payment gateway’s own charge is a separate taxable service supplied to the clinic.