| Question And Answer | |
|---|---|
| Subject: | Benefits of regular or composition scheme |
| Category: | GST |
| Querist: | Kollipara sundaraiah |
| Answered by: | Law Intern |
| Tags: | GST COMPOSITION SCHEME |
| Date: | March 19, 2025 |
A Doctor sales of medicines turnover estimated rs:80 lacs yearly but consultation income rs:50 lacs yearly
Question;
A Doctor gst registered required compulsory and benefits of regular or composition scheme for gst purpose
As regards the consultation income of Rs. 50 lakhs, healthcare services, including consultation by a doctor, are exempt from GST under Notification No. 9/2017-Integrated Tax (Rate), dated 28.06.2017. However, this exempt income is still included in the aggregate turnover calculation.
As regards the medicine sales of Rs. 80 lakhs, the sale of medicines by a doctor is a taxable supply under GST, as it does not fall under the healthcare service exemption (GST applies to goods sold, not services provided during treatment).
Since the aggregate turnover ((taxable + exempt supplies Rs. 130 lakhs) exceeds the threshold limit of Rs. 40 lakhs (for goods) and Rs. 20 lakhs (for services) in normal category states, GST registration is compulsory for the doctor, regardless of the state being a normal or special category state. Even though consultation income is exempt, the total turnover crosses the threshold due to the taxable medicine sales.
As regards the composition scheme, since the doctor’s aggregate turnover of Rs. 130 lakhs exceeds Rs. 50 lakhs, the composition scheme for service providers is not applicable. The only chance is if the doctor is classified purely as a trader of medicines (goods), then the Rs. 1.5 crore limit applies, making them eligible.
The regular scheme is better if the doctor purchases medicines with GST & wants to claim ITC.