Do Doctors Need To Register For Gst?

By Author: Mohit Yadev
Total Articles: 74
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The Indian Medical Association (IMA), which has 2.7 lakh doctors under its fold, has urged the government to exempt healthcare services offered by PRIVATE HOSPITALS from the Goods and Services Tax (GST).
IMA stated that exemption of GST to private sector shall result in several benefits which will include no increase in cost of healthcare being provided by the private sector, affordable healthcare services in India, eradication of any possibility of dis-incentivising future investments in the sector, among others.
Present Scenario :
Healthcare services provided by all types of clinical establishments are exempted from service tax under the mega exemption notification, issued in June 2012, which are strictly defined to cover diagnosis, treatment and care for illness, injury or deformity.
Over here , healthcare service does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma.
Post GST Scenario :
Yet government has not declared ...
... the goods/ services which shall be exempt from GST. Hence the healthcare services which are exempted under service tax may or may not be exempt under GST.
But with regards to registration, As rightly said by Ms Kiran Tahelani
As per clause 22(2) of CGST Act 2017 where any person who is already registered under any existing law is required to register in GST mandatorily.
Hence if any doctor due to any provision of Finance Tax Act 1994 is registered under Service Tax, then such doctor is mandatory to register himself under GST.
As per my view
If a doctor is registered under Finance Act 1994 will have to get registered under GST, But the one who is not registered under Finance Act 1994 should wait till the date government declares the exemption list under GST.
Government’s decision is a big relief to the common man, as healthcare and medical services will not get dearer and would be in affordable range of the common man.
Speaking on the GST issue Finance Minister Arun Jailtley said, “GST bill is going to be consumer friendly. Healthcare and education to be exempted”
While the Finance Ministry tweeted, “Most of services exempted at present will continue to be exempted under GST including healthcare and education services”
Meanwhile the healthcare sector has welcomed the Union government’s decision.
Dr Rajendra Patankar COO of Nanavati Super Speciality Hospital said, “Exempting healthcare from GST is a positive step taken by the Indian government. It will broadly ensure that affordable healthcare services remain within the reach of a majority of people.”