Clinic Billing and GST Basics for Indian Doctors

Most doctors did not go to medical college to learn accounting. Yet every clinic needs clean billing: fees collected correctly, receipts issued, and an end-of-day total that matches what is in the drawer and the bank. This article covers the basics of OPD billing and how GST generally applies to clinics in India.

Disclaimer: this is general information, not tax advice. Tax rules change and depend on your specific situation. Please consult a Chartered Accountant (CA) for advice on your practice.

Is GST charged on doctor consultations?

In general, healthcare services provided by a clinical establishment, an authorised medical practitioner or paramedics are exempt from GST in India. This exemption is set out in government notifications under the GST law. In practice, this means a standard OPD consultation fee is typically not subject to GST.

A few points to keep in mind:

• The exemption is for "health care services", which are broadly services for diagnosis, treatment or care of illness, injury or other conditions. Certain services, such as purely cosmetic or elective procedures that are not for treatment, may not qualify. The line can be fine, especially in dermatology, dentistry and aesthetic practice.
• Sale of goods (for example, medicines or products sold from the clinic) is treated differently from services and may attract GST depending on the item and your registration.
• Whether you need GST registration depends on your total turnover, the nature of your supplies and other factors.
• Exempt services also affect whether you can claim input tax credit on your purchases.

Because these questions depend on your specific services, talk to your CA, especially if you offer cosmetic procedures, sell products, or run multiple locations.

Income tax: keep clean records

Even when GST does not apply, your clinic income is taxable under income tax. Medical practice is a specified profession under income tax rules, and there are book-keeping requirements and presumptive taxation options that may apply depending on your receipts. Your CA can advise on which option suits you. Either way, an accurate record of every fee collected makes tax filing far easier.

What good OPD billing looks like

1. Fixed, clear fee structure

• A consultation fee for new patients or new episodes.
• A follow-up fee (often reduced or free within a defined number of days).
• A clear policy for waived consultations, such as staff, family or financial hardship, and recording them anyway so your patient count is accurate.

2. Record the payment mode

Indian patients pay in cash, UPI and card. Record the mode for every visit. This helps you reconcile cash in the drawer with UPI credits in your bank.

3. Make UPI effortless

A static QR stuck on the counter works, but patients often type the wrong amount. A QR generated with the exact amount for that visit, from your clinic's own UPI ID, avoids mistakes and saves time. The money goes directly to your account.

4. Issue receipts

Many patients need a receipt, for reimbursement, employer claims or their own records. A good receipt includes:

• Clinic name, address and doctor's registration details
• Patient name
• Date
• Service (consultation or follow-up) and amount
• Payment mode
• A receipt or visit number

If you are GST-registered and any supply is taxable, the invoice requirements are different; your CA can advise on the format.

5. Close each day

At the end of each session:

1. Check the day's collection summary in your software.
2. Count cash and compare with the cash total.
3. Check UPI and card totals against your bank or payment app.
4. Review the unpaid list and follow up with anyone who left without paying.

6. Review weekly and monthly

Weekly and monthly summaries show trends: Are follow-ups increasing? Is UPI replacing cash? Is revenue growing on certain days? These patterns help you plan.

Setting your follow-up policy

Follow-up fees cause more confusion at the front desk than almost anything else. Decide your policy once and write it down:

• How many days after a consultation counts as a follow-up?
• Is the follow-up free, discounted or full fee?
• Does a new complaint within that window count as a new consultation?
• Are report reviews charged?

Display the policy at reception. When the software already knows the consultation and follow-up fee, your receptionist simply picks the right one, and patients get consistent answers.

Cash handling tips

• Start each session with a fixed float of change and record it.
• Encourage UPI for exact amounts, which reduces the need for change.
• Deposit cash regularly rather than letting it accumulate in the clinic.
• Have one person responsible for the drawer during each session.

Common billing mistakes

• Not recording waived visits. You lose track of real patient volume.
• Mixing personal and clinic UPI. Use a separate UPI ID for the clinic if possible.
• Relying on memory for unpaid patients. Keep a list.
• No receipts. Patients who need them will ask later, which wastes time.
• Assuming everything is GST-exempt. Cosmetic services and product sales need a closer look.

How MedPrax OPD handles billing

MedPrax OPD's billing is built for OPD simplicity:

• Set your consultation and follow-up fees once.
• Record each payment as cash, UPI, card or waived with one tap.
• Show a UPI QR with the exact amount, generated from your clinic's UPI ID. Payment goes straight to your account.
• Print receipts for patients who need them.
• See daily, weekly and monthly collection summaries.
• Keep an unpaid list so nothing slips through.
• On Pro, reports show revenue per day and other trends.

MedPrax OPD is not accounting software and does not file taxes. It gives you clean, reliable OPD collection records that you or your CA can use.

About MedPrax OPD's own pricing

MedPrax OPD subscription prices are listed plus GST, because software subscriptions are a taxable service. See the pricing page for details. The Starter plan is free forever for one doctor (150 visits a month), and every account gets a 14-day Pro trial with no card required.

Ready to make billing simple? Create your free account.