Is GST Applicable on Pediatric Clinic Services in India?
Short answer: Health care services provided by a clinical establishment or a registered medical practitioner in India, including pediatric consultations, diagnosis, treatment and vaccination given as part of care, are exempt from GST under entry 74 of Notification 12/2017-Central Tax (Rate). GST can apply to things a clinic sells rather than treats with, such as medicines or baby products sold over a pharmacy counter, and to non-therapeutic cosmetic services. A clinic with only exempt services does not need GST registration; one with taxable sales above the threshold does.
Accountants give pediatricians conflicting answers on GST, mostly because the rule is simple for consultations and messy at the edges: the pharmacy counter, vaccines billed separately, and room rent. This is general information; confirm your specific billing with a chartered accountant.
In this guide
- Exempt vs taxable at a glance
- Do you need GST registration?
- Keeping billing clean
- Frequently asked questions
Exempt vs taxable at a glance
| Item | GST position (general) |
|---|---|
| OPD consultation, diagnosis, treatment | Exempt (health care service) |
| Vaccination administered as part of care | Generally treated as exempt health care; get CA advice if billed as a separate sale |
| Nebulisation, dressing, minor procedures | Exempt |
| In-house diagnostics for your patients | Exempt |
| Medicines and baby products sold over the counter | Taxable at applicable rates |
| Cosmetic or non-therapeutic services | Taxable |
| Hospital room rent above ₹5,000/day (non-ICU) | 5% without ITC |
Do you need GST registration?
- Only exempt services: no registration needed, regardless of turnover.
- Taxable sales too (e.g. pharmacy): registration is required once taxable plus exempt aggregate turnover crosses the threshold (₹20 lakh for services, ₹40 lakh for goods in most states; lower in special category states).
- A doctor paying rent for commercial premises may face reverse-charge or input tax questions; ask your CA.
Keeping billing clean
- Separate the clinic (services) from the pharmacy (goods), ideally as distinct billing entities.
- Show consultation, procedure and vaccine lines separately on receipts.
- Keep invoices for vaccine and medicine purchases matched to stock.
- Export monthly collections by category for your accountant.
Clean visit records make clean books. See PediaNex's visit and vaccine history on sample data.
Book a walkthroughFrequently asked questions
Is GST applicable on doctor consultation fees in India?
No. Health care services by a clinical establishment or registered medical practitioner, including consultation fees, are exempt from GST.
Is GST charged on vaccines given in a clinic?
Vaccination administered as part of health care services is generally treated as exempt; if vaccines are billed as separate goods sales, GST treatment can differ, so confirm with a chartered accountant.
Does a pediatric clinic need GST registration?
Not if it only provides exempt health care services. Registration becomes necessary if it also makes taxable supplies, such as pharmacy sales, and crosses the turnover threshold.
Is GST applicable on medicines sold by a clinic pharmacy?
Yes. Medicines sold as goods attract GST at the rate applicable to that product, commonly 5% or 12%.
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