GST on physiotherapy services in India: a 2026 guide

Most physiotherapy clinics in India charge no GST on treatment, and most are right to. But the moment a clinic sells a knee brace, runs a fitness programme or signs a corporate wellness contract, the picture changes, and the bill book needs to handle both on the same page. This guide covers the rules as they stand in 2026. It is not tax advice; confirm the details with your chartered accountant.

The exemption

Health care services provided by a clinical establishment, an authorised medical practitioner or para-medics are exempt from GST under Notification 12/2017-Central Tax (Rate), serial number 74. Physiotherapy delivered by a qualified physiotherapist for the diagnosis, treatment or care of illness, injury or disability falls within "health care services", and physiotherapists are treated as para-medics for this purpose. That covers assessment, treatment sessions, electrotherapy, manual therapy, home visits and tele-rehabilitation consultations alike. Session packs for treatment are exempt too; a pack is just prepaid treatment.

What is taxable

• Goods you sell. Braces, supports, tapes, TheraBands, hot packs, TENS units, pillows and insoles are supplies of goods at their own HSN rate. Orthopaedic appliances and supports under HSN 9021 attract 5 %; many consumables are 12 or 18 %. Check the current rate for each item on the CBIC portal, since rates were rationalised in 2025.
• Fitness, wellness and gym services. A general fitness programme, a weight-loss package or a yoga membership that is not treatment for a diagnosed condition is taxable at 18 %, even if a physiotherapist runs it. The test is whether it is health care for a condition or a lifestyle service.
• Cosmetic and non-therapeutic services. Taxable at 18 %.
• Corporate contracts. A contract to treat an employer's staff for injuries is still exempt health care. A contract for ergonomic workshops, posture camps or "wellness days" is usually a taxable service. Many contracts contain both; split the invoice.
• Training and courses. Teaching other physiotherapists or students is taxable unless run by a recognised educational institution.
• Renting out a room or equipment to another practitioner is a taxable supply.

Do you need to register?

The threshold is ₹20 lakh of aggregate turnover in a financial year (₹10 lakh in special-category states), and aggregate turnover includes exempt supplies. A clinic making only exempt supplies does not need to register regardless of turnover. A clinic with ₹30 lakh of exempt treatment and ₹2 lakh of brace sales does need to register, because its aggregate turnover crosses the threshold and it makes a taxable supply. Many clinics register voluntarily to issue GST invoices to corporate clients and to claim input credit on taxable purchases.

Invoicing both on one bill

A registered clinic issues a tax invoice for taxable supplies and a bill of supply for exempt ones. When a patient buys a session and a knee brace together, the practical approach most CAs accept is a single document that shows each line separately: the exempt treatment line marked "Exempt under Notification 12/2017-CT(R), Sl. No. 74", with SAC 9993 (human health services), and the brace line with its HSN, taxable value, CGST and SGST (or IGST). Totals are shown separately for exempt and taxable amounts. Your GSTIN, the invoice series, the date and the patient's name and address go at the top as usual. Keep one continuous invoice series; do not mix a "cash bill" book with the GST book.

For SAC, the 9993 group covers human health services; many accountants use 999312 (medical services) or 999319 (other human health services) for physiotherapy. Either is acceptable in practice; pick one with your CA and use it consistently.

Input tax credit

You cannot claim input credit on purchases used for exempt supplies. Credit on inputs used only for taxable supplies (stock of braces for resale) is fully claimable. Credit on common inputs (rent, software subscriptions, electricity) is apportioned between taxable and exempt turnover under Rule 42, and the exempt share is reversed. For most clinics this means the 18 % GST on the software subscription is mostly a cost, not a credit, which is worth remembering when comparing prices.

A worked example: one patient, one month

Take a patient after ACL reconstruction who buys a pack of 12 sessions for ₹9,600, a hinged knee brace for ₹2,400 and a set of resistance bands for ₹450 in the first week. The pack is prepaid treatment: one exempt line, SAC 9993, no tax. The brace is an orthopaedic appliance under HSN 9021 at 5 %, so ₹2,400 of taxable value carries ₹60 CGST and ₹60 SGST in an intra-state sale. The bands are a taxable consumable at the rate your CA confirms for their HSN. On a single invoice the clinic shows exempt value ₹9,600, taxable value ₹2,850 and the tax on each taxable line. Each of the next 12 visits records a pack deduction against that invoice rather than a fresh bill, so the pack balance and the books always agree.

Common GST mistakes physio clinics make

• Charging 18 % on treatment. Some clinics add GST to every bill "to be safe". That over-collects tax from patients and is itself an error; exempt services should carry no GST.
• Calling a fitness package treatment. A "weight-loss physio pack" with no diagnosed condition is a taxable service. Label packages honestly and keep the assessment note that justifies the exemption.
• Two bill books. A cash book for treatment and a GST book for goods breaks the single invoice series and makes the GSTR-1 hard to reconcile.
• Forgetting exempt turnover in the threshold. Exempt treatment counts towards the ₹20 lakh aggregate turnover test. A clinic selling a few braces can cross the line without noticing.
• Claiming full input credit on rent and software. Common inputs must be apportioned under Rule 42; most of the credit is reversed in a mostly-exempt clinic.

A checklist for the front desk

1. Decide, item by item, what is exempt and what is taxable; write it on a one-page sheet beside the billing desk.
2. Set up the exempt treatment items with SAC 9993 and the exemption note; set up goods with their HSN and rate.
3. Use one invoice series. Issue a bill of supply or a combined invoice for every visit, including pack deductions.
4. Record UPI, card and cash against each invoice so the monthly summary reconciles.
5. Export a monthly summary of exempt turnover, taxable turnover and tax collected for your CA's GSTR-1 and GSTR-3B.
6. Review corporate contracts for taxable components before signing.

Physio Clinic Software's billing module is built around this: exempt and taxable lines on one invoice, pack deductions billed automatically, UPI recorded against each invoice, and a monthly GST summary export. See how physiotherapy billing software with GST handles it, the features page and pricing from ₹999 a month. The rules above come from the notifications and CBIC clarifications in force in October 2026; they do change, so check with your accountant before relying on them.

Questions people ask

Is physiotherapy exempt from GST in India?

Yes, when a qualified physiotherapist provides treatment for illness, injury or disability. It is a health care service exempt under Notification 12/2017-Central Tax (Rate), serial number 74. Goods sold at the clinic and fitness or wellness programmes are taxable; confirm edge cases with your CA.

What SAC code should a physiotherapy clinic use?

The SAC 9993 group covers human health services. Many accountants use 999312 (medical services) or 999319 (other human health services) for physiotherapy. Agree one code with your CA and use it consistently on every invoice and in your GSTR-1.

Do I charge GST on physiotherapy session packs?

No, if the pack is for treatment of a condition by a qualified physiotherapist; it is prepaid exempt health care. Issue a bill of supply when the pack is bought and record each deduction. A "fitness pack" with no diagnosed condition is taxable at 18 %.

Can I claim GST on my clinic software subscription?

Only in proportion to your taxable turnover under Rule 42. A clinic with 95 % exempt treatment revenue can claim roughly 5 % of the GST paid on the subscription; the rest is a cost.