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IMA requests Finance Minister Sitharaman to remove the healthcare GST.

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PTI    19 July 2022

On Saturday, the Indian Medical Association (IMA) requested Union Finance Minister, Mrs. Nirmala Sitharaman to withdraw the Goods and Services Tax imposed on healthcare services. The IMA spokesperson stated that the GST imposition will raise the running cost of the hospitals and clinics in the country. 

In reference to the recommendation of the 47th GST council which stated "like CTEPs, common bio-medical waste treatment facilities for treatment or disposal of biomedical waste shall be taxed at 12 % to allow them ITC", the IMA members pointed out that, earlier, these facilities were in the GST exempted category. But now they will be taxed post-July 18. The doctors′ body also cited another recommendation which stated that “room rent, excluding ICU, exceeding Rs 5,000 per day per patient charged by the hospital will also be taxed at 5% without input tax credit (ITC)". The IMA members added that this facility was also GST (Goods and Services Tax) exempted. 

The members of the association, in their letter to Mrs. Sitharaman, expressed serious concerns and objections to these new taxes in the healthcare sector as they will indirectly cause a huge burden on the patients’ expenditure. Similarly, the doctor’s body called the steep rise of 12 % in biomedical waste unjustified. The IMA also appealed for an immediate withdrawal of the GST on room rent and biomedical waste in the larger interest of public healthcare in the letter.

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