Gst eligibility for dentist, and beauty saloon

ST Registration for Dentists and Beauty Salons

1. Dentists (Medical Practitioners)

• GST Exemption:

  • As per GST law, healthcare services by a qualified dentist are exempt from GST under Notification No. 12/2017-Central Tax (Rate).

  • This means that if a dentist provides only healthcare services, they are not required to register for GST, irrespective of turnover.

• When GST Registration is Required:

  • If a dentist is engaged in taxable supplies, such as:

    • Sale of dental products (e.g., medicines, dental kits).

    • Providing cosmetic dental services (e.g., teeth whitening, aesthetic procedures).

  • If aggregate turnover exceeds ₹20 lakhs (₹10 lakhs for special category states), GST registration is mandatory​.

2. Beauty Salons & Parlors

• GST Applicability:

  • Beauty and personal grooming services are considered taxable supplies under GST.

  • GST Rate: 18% (SAC Code: 999722).

• Registration Requirement:

  • If aggregate turnover (services & sale of beauty products) exceeds:

    • ₹20 lakhs for regular states.

    • ₹10 lakhs for special category states (e.g., Manipur, Mizoram, Nagaland, Tripura)​.

  • If turnover is below ₹20 lakhs, registration is optional unless opting for voluntary registration.

Key Considerations

• For Dentists: If the practice is purely medical, no GST registration is required. But if selling products or offering aesthetic services, GST is applicable once the turnover limit is crossed.

• For Beauty Salons: GST must be charged at 18% on services and registration is mandatory if turnover crosses ₹20 lakhs.

1. Dentists (Medical Practitioners)

Dentists providing medical services are exempt from GST under Notification No. 12/2017-Central Tax (Rate). This means that if a dentist is engaged solely in healthcare services, they do not require GST registration, irrespective of their turnover.

However, GST registration becomes mandatory if a dentist provides taxable supplies. These include the sale of dental products (such as medicines, dental kits, and oral care products) or cosmetic dental procedures (like teeth whitening, aesthetic braces, and smile makeovers). In such cases, if their aggregate turnover exceeds ₹20 lakhs (₹10 lakhs for special category states), they must register under GST​.

2. Beauty Salons & Parlors

Beauty salons and parlors offer taxable services, which fall under GST regulations. The GST rate applicable to beauty and personal grooming services is 18% (SAC Code: 999722).

For GST registration, a beauty salon or parlor must check whether its aggregate turnover exceeds ₹20 lakhs (₹10 lakhs for special category states like Manipur, Mizoram, Nagaland, and Tripura). If it crosses this threshold, GST registration is mandatory. However, if the turnover is below ₹20 lakhs, registration remains optional, unless the business opts for voluntary registration to avail input tax credit benefits​.

1. ITC on GST Paid under RCM for Land Lease

A party taking land on lease and constructing a commercial property is eligible for Input Tax Credit (ITC) on GST paid under Reverse Charge Mechanism (RCM) for lease rent, provided the lease rent is used for business purposes and the commercial property generates taxable rental income.

As per the Orissa High Court decision in Safari Retreats Private Limited v. CC-CGST (WP(C) No. 20463 of 2018), ITC was allowed on GST paid for the construction of immovable property when the property is used for taxable supplies (i.e., renting out commercial property)​.

However, it is crucial to distinguish between:

• Land Lease for Construction: If lease rental is paid during the construction phase, ITC availability may be disputed under Section 17(5) of CGST Act, 2017.

• Land Lease for Running Business: If lease rent is for a developed property where taxable rental services are provided, ITC is eligible since the property is used for making taxable supplies​.

2. ITC on GST Paid for Building Maintenance (DG Set AMC, Lift AMC, Valet Parking Equipment AMC, and Security Charges under RCM)

As per GST provisions, ITC is available for maintenance-related expenses if the services are used for providing taxable supplies (e.g., commercial property rental).

• Building Maintenance (DG Set AMC, Lift AMC, Valet Parking Equipment AMC): ITC is allowed as these services are essential for the functioning of a commercial property and contribute to the taxable rental income​.

• Security Charges (under RCM): ITC can be claimed on GST paid under RCM for security services, provided the expenses are directly related to the taxable commercial property​.

Conclusion

• ITC on GST paid for land lease rent under RCM is available if the land is used for providing taxable rental services.

• ITC on building maintenance and security expenses is allowed, as these expenses contribute to the supply of taxable rental services.

• If the property is used partially for exempt supplies, ITC must be apportioned accordingly.

Dentists in India are liable to register under GST if their aggregate annual turnover from services exceeds the prescribed threshold limit, which is generally ₹20 lakhs (₹10 lakhs for special category states). However, GST is not applicable on healthcare services affordable dental care Albania provided by a clinical establishment, authorized medical practitioner, or paramedics, as these are exempted under GST. This means that if a dentist is engaged solely in providing healthcare services such as consultation, treatment, or surgery, GST registration is not required.