IMA urges Govt for withdrawal of 5 percent GST on Healthcare Sector

New Delhi: Referring to the financial burden on the patients, the Indian Medical Association (IMA) recently requested the Union Health Ministry and requested them withdraw 5% GST on the hospital room services.

In this regard, a high level delegation of the association, which strongly opposes the new 5% GST policy on hospital room rents exceeding Rs 5000 per day per bed, has decided to meet the Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and Union Minister for Health and Family Welfare Mansukh Mandaviya.

Apart from praying for GST exemption, IMA would also discuss other issues concerning the healthcare sector, the national President of IMA, Sahajanand Prasad Singh told The Hindu.

Medical Dialogues team had earlier reported that for the first time in the country, healthcare services had been brought under the GST net as the council had decided to impose 5 per cent GST without input tax credit on hospital rooms above Rs 5000 per day excluding ICUs.

The hospitals will not be able to claim an Income Tax credit on the same, implying the GST paid by the hospital on purchasing various goods and services will NOT be adjusted against this GST which will have to be deposited with the government.

Earlier, Industry body Ficci in a letter to the finance ministry on Monday had said that 5 per cent GST on non-ICU hospital rooms above Rs 5,000 will increase the cost of healthcare services. 

Now, the Indian Medical Association (IMA) has also come forward and strongly opposing the new GST policy, the association has urged the Union Government to withdraw the same as it would put additional burden on the patients across the country.

While commenting on the issue, Dr. Prasad told The Hindu that this policy might proved to be a big burden on the hospitals as he pointed out that the hospitals were already several financial problems with increased maintenance cost because of upward revision of the overall rents of the hospital, electricity charges, salaries of doctors and staff.

Speaking to the daily, he said, "Health care industry is in a deep financial crisis with the unprecedented maintenance cost. In this background, the government's support is needed for the industry. We are hopeful that the government would respond positively over the issue of GST exemption."