Spectacles, lenses and frames all moved to 5%
The 56th GST Council meeting brought corrective spectacles (9004), spectacle and contact lenses (9001), frames and mountings (9003) and glass for corrective spectacles (7015 10) to 5%, effective 22 September 2025. Before this, frames and some lenses sat at higher rates, and many optical counters still have old rates in their software. Update every optical item master. Sunglasses that do not correct vision were not part of this list, so do not assume they are at 5%.
Eye tests and surgery are exempt health care
A refraction test, eye examination, cataract surgery, glaucoma treatment or LASIK done to correct a vision defect is treatment of an abnormality by a qualified practitioner, and is exempt. The intraocular lens implanted during cataract surgery is part of that composite service, so it is not billed as taxable goods. A clinic offering only these services need not register. Selling spectacles over the counter is a separate taxable supply of goods.
Mixed bills and registration
Most eye clinics with an optical counter have taxable goods sales, so registration is usually needed once aggregate turnover, including exempt surgery fees, crosses the threshold for a mixed business. Use one invoice-cum-bill of supply that lists the exempt examination and the taxable spectacles separately, or issue two documents. Never fold the examination fee into the spectacles price or vice versa.
Advance on spectacles orders
Patients usually pay part of the price when ordering glasses. For goods, GST is not due on advances under the current rules, so the tax is charged on the invoice when the spectacles are delivered. Issue a receipt for the advance and show it as adjusted on the final invoice. Keep a record of uncollected orders and refund advances properly when a patient cancels.
Input tax credit on optical stock
Optical lenses and frames bought from labs and distributors carry 5% GST, which a registered clinic can claim as credit against tax on spectacles sold. Credit related to exempt surgery, such as surgical consumables and equipment, must be reversed. Common costs like rent are split using the formula in Rule 42. Keep optical purchases on a separate ledger to make the split simple.
Children's and senior screening camps
Eye clinics often run free or subsidised screening camps with schools, employers or charitable trusts. Where a corporate pays the clinic to screen its employees, the screening is still diagnosis by qualified staff and is exempt. Spectacles handed out at such camps are a supply of goods; if a sponsor pays for them, raise a tax invoice to the sponsor at 5%. Free spectacles with no consideration need care: credit on them may have to be reversed as gifts.