पहला सुख, निरोगी काया
These FAQs are in continuation to Part 1 of GST on Medical & Health Care Sector, where we have discussed:-
- Exemption given to Health Care Service under GST;
- Illustrative list of Services that are exempted under GST and supplies that are liable for tax under GST;
- Rate of GST on various Taxable Sale.
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FAQ 1 : What is the Basic Exemption Limit under GST?
Reply : Persons who’s Aggregate Turnover in a Financial Year does not exceeds Rs. 20 Lakhs (Rs. 10 Lakhs in case of Special Category States) is covered under basic Exemption Limit of GST and is not required to register under GST [Refer Section 22 of CGST Act, 2017].
Aggregate Turnover = Taxable T.O. + Exempted (Nil rated) T.O. + Exports
FAQ 2 : Are the consumables used in Operation, Procedures & Nursing Care liable to GST?
Reply : Any Consumable which has been used in operation, procedure and Nursing Care, for which no separate charges have been taken, shall also be Exempted under GST as part of the main service that is exempted vide Notification No. 09/2017 – Integrated Tax (Rate) dated 28-06-2017. However, the purchase of such consumable by a clinical establishment or a recognised medical practitioner or a para-medic, shall be liable to GST at applicable rates for which no ITC could be claimed.
FAQ 3 : Are the medicines dispensed by an authorised Medical Practitioner for which no separate charges have been taken are liable to GST?
Reply : This is a very common practice in India where a medical practitioner (like homeopathic doctor) gives medicines after the consultation and no separate charge for such medicines dispensed is being charged by him from the patient.
In our view, if separate charges for medicines (other than consultation fees or procedural charges etc.) have not been taken by a clinical establishment or a recognised medical practitioner or a para-medic, for the medicine dispensed by them, the same shall be construed as integral part of the main service that is Exempted under GST vide Notification No. 09/2017 – Integrated Tax (Rate) dated 28-06-2017,
FAQ 4 : Can a clinical establishment or a recognised medical practitioner or a para-medic, with Aggregate Turnover less than Rs. 1.50 Crores in a year, having a medical store/ shop, take registration under GST Composition Scheme for sale of medicines etc?
Reply : Supplier of services, other than restaurant service are not eligible for Composition Scheme, hence a clinical establishment or a recognised medical practitioner or a para-medic, selling medicines are not permitted to opt for Composition Scheme under GST for Sale of Medicines.
However, if the total turnover of authorised Medical Practitioner including exempted services and sale of medicines is less than Rs. 20 Lakhs, then they are not liable to be registered under GST and they can sell medicines as unregistered persons without charging GST.
FAQ 5 : What is the Rate of GST on Rent & Commission received by a clinical establishment or a recognised medical practitioner or a para-medic?
Reply : The Rate of GST on Rent and Commission is 18%.