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

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."