Industry and trade chambers have voiced concern at some of last week’s decisions of the Goods and Services Tax (GST) Council, such as taxing hospital room tariffs and bringing unbranded packaged consumer items within the tax net. 

The Federation of Indian Chambers of Commerce and Industry (FICCI) has written to Union Finance Minister Mrs. Nirmala Sitharaman, seeking zero-rate GST for health care services to enable service providers to claim an input tax credit (ITC). The letter also addressed a request for assurance that the input taxes are not loaded into the cost of health care services.

Raising concern over the GST Council’s decision to impose 5 percent on room rent (excluding ICU), the chamber stated that tax exceeding Rs 5,000 per day and 12 percent on bio-medical waste treatment plants, will increase the cost of treatment for patients. “Levying 5 percent on room rent will not just increase the cost of healthcare services to the patients but will also create confusion for hospitals, as room rent is usually part of the package rate for the treatment.”