India’s Digital Push: Healthcare Meets Fintech via E-Clinics
Affordable e-healthcare services are becoming a reality for crores of Indians, thanks to a new partnership between PayNearby and health-tech platform M-Swasth. With over 3,800 digital e-clinics launched across rural and semi-urban areas, this collaboration promises to bridge the gap between basic medical access and underserved regions.
This blog breaks down the tax and policy angle behind this partnership—and what it means for India’s fintech-healthcare ecosystem.
Why This Partnership Matters for India
- PayNearby, a leading branchless banking and fintech player, is now entering the telemedicine and e-healthcare sector.
- M-Swasth offers an integrated digital clinic platform with diagnostic, pharmacy, and consultation support.
- Over 3,800 clinics are now active across the country—targeted at Bharat’s underserved healthcare segments.
- The initiative supports Ayushman Bharat Digital Mission (ABDM) and India’s Digital Health Stack vision.
Tax & Compliance Implications: What Professionals Should Note
1. GST Applicability
- Healthcare services by clinical establishments, doctors, and authorized medical professionals are exempt under Notification No. 12/2017-Central Tax (Rate).
- However, if bundled with non-exempt services (e.g., product sales, insurance tech), composite supply rules under Section 8 of CGST Act may apply.
2. TDS Provisions
- Payments to professionals/doctors via the platform may attract TDS under Section 194J (Fees for professional services) if threshold limits are crossed.
3. Section 80D Benefits
- Consultation and diagnostic services offered digitally may qualify under preventive health check-up if invoices are maintained.
4. Input Tax Credit (ITC)
- Any GST paid on IT-related services to develop the e-clinic portal (cloud infra, software dev) can be claimed as ITC by PayNearby or M-Swasth, subject to Section 16 of CGST Act.
Legal & Policy Support
- National Digital Health Mission (NDHM) policy framework encourages such digital public-private models.
- Section 10(23C) and 12AB of the Income Tax Act may offer exemptions if the health platform registers as a charitable institution.
- PM Gati Shakti and Digital India both highlight healthcare-tech infra as a priority growth area.
Healthcare & Bharat: What Comes Next?
- India has over 6.5 lakh villages but limited PHCs. Fintech-enabled health access can fill this vacuum faster than traditional models.
- These e-clinics can act as a data collection point for public health policy, while offering affordable OPD consultations, diagnostics, and even specialist tele-consults.