Compliance Made Simple for Medical Professionals

Healthcare services provided by authorised medical practitioners are exempt from GST under Notification 12/2017. However, pharmacy sales, cosmetic/aesthetic procedures, and room rent exceeding ₹5,000 per day are taxable at 18%. If your clinic has a pharmacy counter or offers cosmetic treatments, you need GST registration regardless of turnover.

Section 44ADA is a presumptive taxation scheme for professionals including doctors. Under this section, 50% of your gross receipts are deemed as profit — you pay tax only on that 50%. You don’t need to maintain detailed books of account if your total receipts are under ₹75 lakh (₹50 lakh if receipts are in cash). This significantly simplifies compliance and often reduces your effective tax burden.

Yes, if you stock or dispense medicines at your clinic. You need Form 20B (retail drug license) to sell medicines to patients, and Form 21B if you purchase medicines in wholesale quantities. The license is issued by the State Drug Controller and must be renewed every 5 years. Operating without a valid drug license can attract penalties up to ₹1 lakh and imprisonment.

Yes, if you opt out of presumptive taxation (44ADA), you can claim depreciation on medical equipment, furniture, and computers under the Written Down Value (WDV) method. Medical equipment attracts 15–40% depreciation depending on the category. Dental chairs, X-ray machines, and ultrasound equipment qualify. However, under 44ADA, all deductions are already deemed included in the 50% expense allowance.

A multi-doctor clinic or hospital requires: Company or LLP registration, Clinical Establishment Act registration, Biomedical Waste Authorisation (BMW Rules), Fire NOC from the local fire department, AERB registration if you have radiology/X-ray equipment, NABH accreditation (optional but recommended), and PF/ESI registration if you have 10+ employees. TaxClue handles all of this end-to-end.