IMA writes to Finance Minister, urges to withdraw GST on healthcare services

July 17: The Indian Medical Association (IMA) has written a letter to Union Finance Minister Nirmala Sitharaman requesting to exempt healthcare services from GST. Citing various recommendations by the 47th GST Council on certain facilities that were earlier exempted from GST and will be taxed post-July 18, IMA said the cost “will add a significant additional cost to the healthcare of people.”

47th GST Council meeting has also recommended 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.” The IMA said, in its letter, that this facility was also GST exempted category and was to be effective from July 18.

The letter mentioned that the decision is unfortunate and unfair to the people of the country and decision without input tax credits is going to raise the healthcare cost. IMA in its argument said the healthcare system of the country is already not on track owing to meagre government spending on health, adding people largely are dependent upon the private sector with high out-of-pocket expenditures.

Raising bed charges by applying GST will undeservingly paint doctors with a blot while the onus of rising healthcare expenditures will stand with the government only, it said. Letter undersigned by IMA President Dr Sahajanand Prasad Singh suggested that it will be correct to keep healthcare away from GST. IMA requested Sitharaman to withdraw GST on room rent and biomedical waste in the larger interest of public healthcare.