Invoice format for doctors and clinics
Healthcare services by a recognised practitioner are exempt from GST, but cosmetic procedures, dietary supplements sold at the clinic and room rent above the notified threshold are not, so a mixed practice needs two document types.
SAC codes you are likely to need
| SAC | Covers |
|---|---|
| 999312 | Medical and dental services |
| 999316 | Other human health services |
| 999319 | Other health services not elsewhere classified |
Typical rate: Exempt for healthcare services; taxable for specified supplies
Lines this trade needs that a generic template misses
- Consultation or procedure, described without disclosing clinical detail on a document others may see
- Room category and nights, for in-patient billing
- Consumables and pharmacy items, kept separate from the professional fee
- Whether the line is exempt or taxable, marked per line
What goes wrong on these invoices
Issuing a tax invoice for exempt healthcare services. Exempt supplies require a bill of supply, not a tax invoice. Issuing the wrong document is a compliance problem even when no tax was wrongly charged.
Assuming everything a clinic does is exempt. Cosmetic and aesthetic procedures other than those required to restore function are generally outside the exemption, as are supplements and retail items sold at the counter.
Putting a diagnosis on an invoice that will be handled by an employer, an insurer or an accounts department. The billing document does not need it and patients rarely expect it to be there.
The boundary between exempt healthcare and taxable supply is genuinely contested in places. This is a question for a professional, not a template.
The particulars every tax invoice needs
Beyond the trade-specific lines above, Rule 46 of the CGST Rules requires your name, address and GSTIN; a consecutive serial number unique within the financial year and no longer than sixteen characters; the date; your customer's name, address and GSTIN where registered; the place of supply; a description of the supply; the SAC code; quantity and unit; taxable value; the rate and amount of tax split into CGST and SGST or IGST; whether tax is payable on reverse charge; and a signature.
The invoice generator lays all of that out and works out the tax split for you. The numbering tool checks your serial format against the sixteen-character limit.
Common questions
- Which SAC code applies to doctors and clinics?
- 999312 covers medical and dental services. Related codes you may need are 999316 for other human health services, and 999319 for other health services not elsewhere classified. Classification is your accountant's call, not a template's.
- What GST rate applies?
- Exempt for healthcare services; taxable for specified supplies. Rates are revised by notification from time to time, so confirm the rate in force on the date of supply against the CBIC rate finder rather than relying on any figure printed on a website.
- Do I need a GST registration to invoice?
- Not necessarily. Below the registration threshold you can issue a bill of supply rather than a tax invoice, and you do not charge GST. Once registered, a tax invoice with all the Rule 46 particulars becomes mandatory. The threshold differs for goods and services and for special category states.
- Can I use this format as-is?
- The structure and the fields, yes. The codes, rates and treatment need checking against your own facts. This page tells you what the invoice needs to carry; it cannot tell you what your specific supply is classified as.