IMA Asks Centre To Withdraw GST On Healthcare

Indian MedicalAssociation (IMA) today has requested the government to remove the imposition of GST on healthcare. The letter by the organisation said the decision is unfortunate and shall make healthcare expensive without ITC.

IMA Asks Centre To Withdraw GST On Healthcare

The 47th GST Council meeting has recommended that 'Like CTEPs, common bio-medical waste treatment facilities for treatment or disposal of biomedical waste shall be taxed at 12 per cent so as to allow them ITC (NS: ITC )'. This is to be effective from 18th of July 2022. This was earlier in GST exempted category," said the IMA, the largest association of modern medicine doctors, representing more than 4 lakh doctors and their healthcare establishments, said in the letter.

Also it proposed that 'Room rent, excluding ICU, exceeding Rs 5,000 per day per patient charged by the hospital will also be taxed at 5 per cent, without ITC'. This is to be effective from 18th of July 2022. This was earlier in GST exempted category.

"We, as collective voice of all establishments and doctors of the country express our serious concerns and objections to these new taxes in healthcare sector. This step will add big additional cost to the healthcare of people," the IMA said in the letter.

So, as the centre does not contributes to healthcare significantly and much is dependent on the private sector, with high expenses, the levy of GST shall only raise the bed charges, said the IMA.

"Keeping rates below Rs 5,000 will compel augmentation of other charges for feasibility," it said.
Likewise, a higher GST of 12% on bio-medical waste is also unjustified and it shall only make the cost higher for healthcare providers and in turn for patients.