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RCM FOR DOCTOR FEES

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N.N.RAJAN

PROFESSIONAL

87 Points Posted on 20 April 2020

Sir,

Whether a Pvt. Ltd hospital is liable under reverse charge towards charges paid for attending patients to a Doctor who is also a director ?

Replies (4)

Quick Summary

This discussion clarifies whether private hospitals are liable for GST under the Reverse Charge Mechanism (RCM) when paying fees to doctors who are also directors. While director remuneration might attract RCM, the treatment of these 'charges' is key. If considered part of salary, they may be exempt. If treated as separate consulting charges, the hospital could be liable for GST on an RCM basis. However, healthcare services are generally exempt from GST, and doctor services to a hospital aren't typically notified for RCM.

Durga Prasad

79 Points Posted on 20 April 2020

Yes Under RCM basis company is liable to pay Gst on director remuneration.
But as per your query charges are different from remuneration.
In my opinion if charges are covered under salary then total charges are exempted.
If the charges are not covered under salary then company is liable to pay Gst on reverse charge basis.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 20 April 2020

@ Mr N N RAJAN.,

Are You dealt the doctor's remuneration as salary or consulting charges...?

note : Healthcare services is exempted under GST...

Shivam RC

Student

7666 Points Posted on 20 April 2020

Raja PM Sir has raised the correct question. It depends how the Hospital is treating the Remuneration being paid to the Doctor who at the same time is also a Director.

Moreover, any services provided by Doctor to the Hospital is not a notified Services for RCM ( under Section 9(3) of the CGST Act 2017 ). And also as per MEGA Exemption Notification i.e. Notification No. 12/2017 - Central Tax ( Rate ), dated 28.07.2017, "HEALTHCARE SERVICES are EXEMPTED FROM GST".