The government’s decision to levy 5% GST on non-ICU hospital rooms with rent above Rs5000 will come into effect from July 18. This decision was taken during the 47th meeting of the Goods and Services Tax (GST) Council that was held late last month.
However, this action by the government has received a lot of resistance from the industry. The healthcare sector is not like any other consumer-based sector, and should not be treated like one, the industry leaders have claimed. Although the move is aimed at larger tax rate realization, the industry has ferociously expressed its dissatisfaction over the matter.
Until now, the health sector was exempt from the GST. The tax was not imposed on health care services by a clinical establishment, an authorized medical practitioner, or paramedics. However, the GST would further increase the financial burden on patients.
The industry has protested against this tax, saying that nearly today 62% of people prefer to get their healthcare from private players. They can get many services that make their life a little easier during a tough time. they can get comfortable rooms and convenient service. However, with 5% GST, patients will have to pay more for these services and many may not be able to afford them. This tax will deprive people of good healthcare services, the sources said.
Furthermore, the industry has argued that hospital stays are not a luxury but a necessity during a medical crisis. So, any healthcare-related service should be exempted from taxes.
