GST on Dentists & Dental Clinics – Complete Guide

1. Introduction

Dental services form an important part of India’s healthcare sector. After GST implementation, one of the common questions among dentists and dental clinic owners is whether dental treatments are taxable or exempt. Understanding correct GST classification helps avoid unnecessary tax payments, ITC reversals, and departmental notices.

This article explains GST applicability on dental services, exemptions, SAC codes, ITC rules, compliance requirements, and practical examples in simple language.

2. Nature of Service (As per GST Law)

Dental services are treated as “healthcare services” when rendered for diagnosis, treatment, or care of dental disease. Such services provided by a clinical establishment or a registered dental practitioner are exempt under GST.

However, cosmetic dental procedures that are not medically required are taxable.

3. Relevant HSN / SAC Codes

Activity / Service	Applicable SAC	Remarks
Dental treatment services	999312	Human health services
Cosmetic dental procedures	999799	Aesthetic/non-medical services
Diagnostic/lab services	999314	Exempt when part of treatment
Sale of medicines	Depends on HSN	Taxable as goods

4. GST Rates Applicable

GST Rate Chart

Nature of Supply	GST Rate	Notes
Dental treatment, surgery, consultation	Exempt (0%)	Notification 12/2017-CT (Rate), Entry 74
Cosmetic dental procedures (whitening, veneers etc.)	18%	Considered cosmetic treatment
Sale of medicines	5% / 12% / 18%	Based on product
Sale of implants/equipment	18%	As medical devices
Consultancy to corporates	18%	Not healthcare service

5. GST Exemptions

Exempt Under Entry 74 (Notification 12/2017)

Healthcare services provided by:

• Clinical establishment
• Authorised medical practitioner
• Paramedics

are fully exempt from GST.

Examples (Exempt)

• Tooth extraction
• Root canal
• Filling and restoration
• Braces/aligners where medically required
• X-rays linked to treatment

Non-Exempt (Taxable) Examples

• Teeth whitening for cosmetic purpose
• Smile designing
• Veneers purely for aesthetic improvement
• Sale of dental products
• Renting space inside clinic

6. Input Tax Credit (ITC) Rules

Eligible ITC (Only for taxable services)

• Dental chairs and equipment
• Medicines for resale
• Clinic furniture
• Computers and software
• AC and electrical fittings

Ineligible ITC

• ITC on expenses exclusively for exempt healthcare services
• Construction of clinic building (Section 17(5))
• Personal expenses

Special Rule

If the dentist provides both taxable and exempt services, Rule 42 (proportionate reversal) must be applied.

7. Reverse Charge Mechanism (RCM)

Supplier	Service	RCM Applicable	Rate
Advocate	Legal services	Yes	18%
GTA	Transport service	Yes, if consignment note issued	5% / 12%
Unregistered doctor to dentist	Healthcare	No	Exempt
Import of software/services	Consultancy, software	Yes	As applicable

8. Place of Supply Rules

Within India

• Place of supply = location of clinic
• Generally attracts CGST + SGST

Foreign Patients (Online Consultancy)

If payment is received in foreign currency and other export conditions are satisfied, then service may qualify as zero-rated supply.

9. Registration Requirements

Dentists providing only exempt healthcare services are not required to obtain GST registration.

Registration Mandatory When

• Cosmetic procedures provided (taxable)
• Renting clinic premises
• Online consultancy treated as export
• Corporate contracts for dental check-up
• Sale of medicines/equipment exceeding ₹20 lakh threshold
• Inter-State taxable supply (Section 24)

10. Compliance Requirements

• Tax invoice for taxable services, bill of supply for exempt
• Maintain separate records for taxable and exempt income
• Apply Rule 42 where applicable
• File GSTR-1, GSTR-3B, GSTR-9 if registered
• Discharge applicable RCM liabilities

11. Latest GST Updates (2024–25)

• No change in GST exemption for healthcare services
• Clarifications issued: cosmetic procedures are taxable
• Increased scrutiny on clinics selling medicines without charging GST
• Recent AAR decisions affirm medical dental treatment is exempt

12. Practical Issues & Common Mistakes

• Charging GST on exempt dental treatments
• Not charging GST on cosmetic dental procedures
• Wrong SAC code usage
• Wrongly claiming full ITC while also providing exempt services
• Not discharging RCM on legal and transportation services
• Issuing a single mixed invoice for both exempt and taxable items

13. Case Studies & Examples

1: Tooth Extraction

• Nature: Healthcare service
• GST: Exempt
• Document: Bill of supply

2: Teeth Whitening

• Nature: Cosmetic procedure
• GST: 18%
• Document: Tax invoice

3: Mixed Services

A dentist performs root canal (exempt) and whitening (taxable).
Separate invoices should be issued.
ITC must be proportionately reversed.

Example 4: Online Consultancy to Foreign Patient

• Patient outside India
• Payment in foreign currency
• May qualify as export of service
• Zero-rated if all conditions met

14. Summary Table

Topic	Summary
SAC Code	999312
GST Rate	Exempt for treatment; 18% for cosmetic
Exemptions	Entry 74, Notification 12/2017
ITC	Allowed only for taxable portion
RCM	Applicable on specific services
Compliances	GSTR-1, GSTR-3B, GSTR-9

15. Conclusion

GST on dentists and dental clinics depends on the nature of service. While medically necessary dental treatments remain exempt, cosmetic and aesthetic dental procedures attract 18% GST. Proper classification, accurate billing, and compliance with ITC rules help avoid notices and protect the clinic from litigation. Consulting a GST professional ensures correct tax planning and documentation.