GST on physiotherapy in India: is it exempt or 18%?

Most physiotherapy treatment in India is exempt from GST — but "most" is not "all." Whether you charge 0% or have to add 18% depends less on the word "physiotherapy" and more on who is providing the service and what is actually being supplied. Get it wrong and you either overcharge patients or under-collect tax. Here's the clear version.

The short answer

Physiotherapy delivered as healthcare — diagnosis, treatment, or rehabilitation by a qualified physiotherapist or a clinical establishment — is generally exempt from GST.

This flows from entry 74 of Notification No. 12/2017 – Central Tax (Rate), which exempts "health care services by a clinical establishment, an authorised medical practitioner or para-medics." "Health care services" is defined broadly as services by way of diagnosis, treatment, or care for illness, injury, deformity, or abnormality in a recognised system of medicine.

So a patient coming in for post-surgery knee rehab, a slipped-disc programme, or stroke physiotherapy is receiving an exempt healthcare service. You do not add GST to that.

When GST can apply

The exemption is tied to healthcare. The moment a supply stops being treatment-of-a-condition, it can fall outside the exemption:

• Pure wellness / fitness — general posture-improvement classes, fitness or "wellness" memberships, ergonomic corporate workshops that aren't treating a diagnosed condition.
• Sale of goods — TENS units, braces, exercise bands, orthotics, supplements. These are a supply of goods and attract the GST rate applicable to that product, regardless of your exempt services.
• Cosmetic or non-clinical procedures — anything not aimed at treating an illness or injury.
• Provider not covered — the exemption assumes a clinical establishment, an authorised practitioner, or para-medics. A non-clinical operator selling "physio-style" services may not qualify.

This table is a starting point for a conversation with your accountant — not a ruling. Borderline cases (wellness vs. treatment) genuinely turn on facts.

Do you need GST registration?

Two things often get conflated — charging GST and registering for GST.

• A person making only exempt supplies is generally not liable to register (Section 23 of the CGST Act).
• The registration threshold is ₹20 lakh aggregate turnover (₹10 lakh for certain special-category states). Note that aggregate turnover includes exempt turnover for the threshold calculation.
• If you also make taxable supplies — say you sell equipment or run taxable wellness programmes — you may cross into needing registration and charging GST on those supplies.

A clinic that only treats patients and sells nothing taxable is usually in a simple position. A clinic with a retail counter or corporate-wellness arm needs to look harder.

What to put on the patient's bill

Even when the service is exempt, give the patient a clear, professional bill:

• Clinic name, address, and GSTIN if you are registered.
• A sequential bill number and date.
• A clear description of the service (e.g. "Physiotherapy session — lower back").
• The amount, and — where it applies — a line stating the service is an exempt healthcare service so there's no ambiguity about why no GST was added.
• If you do sell taxable goods, show those on a separate GST line with the rate.

For the full field-by-field layout, see our guide on what a physiotherapy bill should include in India.

The practical takeaway

For a typical treatment-focused physiotherapy clinic: your core service is exempt, and you don't add GST to it. The complexity only appears when you sell goods or offer non-treatment services alongside — and that's exactly where a quick check with a CA pays for itself.

---

This article is general information as of 2026 and is not tax or legal advice. GST notifications, thresholds, and interpretations change, and your specific situation may differ. Confirm your position with a qualified chartered accountant or GST practitioner before relying on it.