CONSULTEASE.COM
Litigation Management Webinar

Sign In

Browse By

All QuestionsCategory: GST CompliancesGst registration for practicing doctors
Dr Mahima asked 3 years ago

Gst registration for practicing doctors

Hi, iam pediatrician and have a clinic where along with consultation  I sell medicines (5%GST) worth 5 Lakh /year 
Turnover from clinic is 15 Lakh, I also visit other hospitals as consultant where I get additional consultation fee of around 9 Lakh/year so  taxable sale is 5 Lakh  clinic turnover is 15 Lakh but total income is 24 Lakh 
SHOULD I REGISTER FOR GST? Many of the doctors are in similar situation
kindly answer 

Answer the question
2 Answers
Profile photo of Meenal JainMeenal Jain answered 3 years ago

Kindly tell me the turnover separately. How much do you earn from consultation from other hospitals and how much is your clinic turnover. Also total medicine sales amount. 

Profile photo of RAJAT SINGHANIARAJAT SINGHANIA answered 3 years ago

Dr Mahima,
I restate the fact told by you as under, for clarity purpose:

  1. Medicine sold from your clinic = Rs. 5 Lakh/year.

      2. Turnover from clinic (INCLUDING sale of medicine) = Rs. 15 Lakh/year.
      3. Consultancy fees received from hospitals = Rs. 9 Lakh/year. 
      4. Total Income [2+3] = Rs. 24 Lakh/year [15 Lakh + 9 Lakh]
[Note: By the term ‘Turnover from Clinic’ as told by you, I presume that you mean the income you derive by self practicing, together with the sale of medicine]
If I have restated the facts correctly, then the solution to this would be as follows: 

  • As per Section 22(1) of the The CGST Act, 2017, Registration is to be taken under GST, if the AGGREGATE TURNOVER in financial  year, from the supply of goods or services or both, exceeds TWENTY LAKH rupees. 

[Note: Twenty Lakh is to be read as Ten Lakh, in case the supply is made from ‘Special States’, viz a viz the states of Andhra Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttrakhand] 

  • Now as per Section 2(6) of The CGST Act, 2017, ‘AGGREGATE TURNOVER’ means the aggregate value of all taxable supplies, exempt supplies of persons having the same PAN. 
  • As per the facts stated by you, your aggregate turnover in a financial year would be Rs. 24 lakh, that exceeds Rs. 20 lakh. (Considering that you are not from any ‘Special State’)
  • In light of the above discussion I would conclude that, you have to take registration under GST, AT THE TIME WHEN YOUR AGGREGATE TURNOVER EXCEED Rs. 20 Lakh.  

Also please note that, Health care services provided by a clinical establishment, an authorised medical practitioner or para-medics is exempt from GST. Thus after registration, you would only be liable to pay GST only on the sale of medicine.
Further please note that, Authorized Medical Practitioner includes medical practitioner who is registered with the Indian Medical Council or a foreign doctor who has requisite qualification to practice in India.