Withdraw GST on healthcare, IMA asks Finance Minister Nirmala Sitharaman

The Indian Medical Association (IMA) told Finance Minister Nirmala Sitharaman that the Goods and Services Tax (GST) will increase the cost of operating hospitals and clinics in the country.

These facilities were earlier included in the GST exempt category and would be subject to tax after July 18. This is in the context of a recommendation of the 47th GST Council which states that “Room rent, excluding ICU, is higher 5,000 per day per patient will also be levied by the hospital at the rate of 5 per cent, without Input Tax Credit (ITC).

Read also | Impact of 5% GST on non-ICU hospital rooms not significant: Revenue Secretary

Another request made by the IMA was also referred to, which stated that “the room rent, excluding ICU, is more Without Input Tax Credit (ITC) the hospital would attract 5 per cent tax at the rate of Rs 5,000 per day per patient. The IMA has claimed in its letter that this facility is also exempt from GST (Goods and Services Tax) and will now be there. Be subject to GST rules by 18th July.

“We, as collective voice of all establishments And the doctors of the country express their serious concern and objection to these new taxes in the healthcare sector. The IMA’s letter said the move would add a huge additional cost to the health care of the people.

It said, ‘We request you to immediately withdraw the GST on health services.

India’s health system is already closed due to low government investment on health care, IMA further announced, It states that people are heavily dependent on the private sector and spend more out of their pocket. The decision to implement GST will only increase the cost of basic rooms.

The IMA said, “The room rent in the hospital is profiteering from the suffering of a sick person. It is no less than the ‘salt tax’ imposed by the British on Indians, for which even our Father of the Nation Mahatma Gandhi had to protest.” Said in the letter.

similar to last statementIt claimed that the sharp increase of 12% on organic waste is unreasonable and will increase the cost of operating hospitals and clinics. This will further translate into higher patient fees, the letter said.

“The implementation of GST will push healthcare away from a service-centric model to a business model, and will not be fair to our citizens who are already facing many difficulties. Hence, it is our Sincere and urgent request is to withdraw GST on room rent and biomedical waste in the larger interest of public healthcare,” the IMA said.

(with PTI inputs)

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