IMA writes to Centre, seeks withdrawal of GST on healthcare services

The Indian Medical Association on Saturday wrote to the central government, seeking the withdrawal of Goods and Service Tax (GST) on healthcare services.

The Indian Medical Association on Saturday wrote a letter to Union Finance Minister Nirmala Sitharaman requesting an exemption from the Goods and Services Tax (GST) for healthcare services.

In the letter, IMA mentioned that the 47th GST Council meeting has recommended that "like the Cancer Therapy Evaluation Programs (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 an Input Tax Credit (ITC)."

IMA said these facilities were earlier in the GST exempted category and will be taxed post-July 18.

The 47th GST Council meeting 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 exempt and was to be effective from July 18.

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

The letter further mentioned that the decision is unfortunate and unfair to the people of the country and that the decision without input tax credits is going to raise healthcare costs.