Mumbai: Doctors are apparently as puzzled with the Goods and Services Tax (GST) regime as the man on the street, with the Indian Medical Association (IMA) organising a session with a chartered accountant for its members to understand their tax liabilities, in Juhu on Sunday. The GST came into force in the country on July 1.
Dr. Jayesh Lele, member, IMA said though healthcare services are exempt from GST, several sector-related services aren’t. “Many members have their own dispensaries or nursing homes, and wanted to know if a doctor should register for GST, and taxes applicable on medical equipment and devices among other questions.”
Pharmaceutical items
Chartered Accountant Dilip Phadke, who conducted the session, said a GST registration is needed to sell pharmaceutical items in a hospital or nursing home. “No tax is applicable when the items are being used for the patient directly by the hospital. A GST registration becomes mandatory if the hospital premises has a chemist’s where goods are being sold. GST may be between 5% and 18%, depending on the product.”
Hospital food
Many healthcare facilities outsource food supply for patients to caterers. Mr. Phadke said food services will not be taxed, but royalty or rent the caterer pays to the proprietor of the medical set-up will attract 18% GST.
Rent
The proprietor of a medical facility will have to register for GST if he plans to rent out space to ATMs, chemists or others, and will have to pay tax.
Lectures, conferences
GST will be applicable on all types of conference fees and Continuous Medical Education (CME) sessions. Also, a medical expert’s income from a guest lecture will be taxed. “Overall, costs will increase in some form or the other for doctors. Patients have no liability to pay these taxes unless the doctor decides to pass on the burden.” Mr. Phadke said.
