The Indian Medical Association (IMA) wrote to Federal Finance Minister Nirmala Sitharaman on Saturday requesting an exemption from the Goods and Services Tax (GST) for health care services.
In a letter, IMA said at the 47th GST Council meeting, “Similar to CTEP, a general biomedical waste treatment facility for the treatment or disposal of biomedical waste will allow the ITC. Will be taxed at 12%. ”
IMA said these facilities are early in the GST tax exemption category and will be taxed after July 18th.
At the 47th GST Council meeting, it was recommended that “except for the ICU, rents for rooms over 5,000 rupees per patient per day charged by the hospital will also be subject to a 5% tax without ITC.” It has been.
In its letter, IMA states that the facility is also in the GST tax exemption category and will be effective from 18 July.
“We express serious concern and opposition to these new taxes in the healthcare sector as a collective voice of all institutions and doctors in the country. This step adds significant additional costs to people’s health care. I will do it, “said IMA.
The letter stated that the decision was unfortunate and unfair to the people of the country, and that a decision without an input tax credit would raise medical costs.
“Medical institutions are demanding that the GST for medical services be withdrawn immediately,” he said.
The IMA added in its discussion that the national health system is no longer on track due to the government’s low health costs.
The decision to add GST only raises the basic bed rate. Keeping the rate below 5,000 will force other charges to increase for feasibility.
“It is unfair to increase government revenues through the burden of public health care. The misstructured health insurance sector cannot address its purpose and purpose,” the letter read.
People are still suffering from out-of-pocket and out-of-pocket spending. To what extent is this decision to slap GST at bed rates if people fall below the poverty line due to medical costs? The letter asked further.
IMA said it would keep the decision without input. Credits are unfair to health care and learned professionals.
Applying GST to raise bed rates would unfairly stain doctors, and the government was solely responsible for the increase in medical costs, he said.
A letter signed by IMA President Dr. Sahajan and Prasad Singh suggests that it is right to keep health care away from the GST.
If not possible, a temporary tax credit is required to curb the rise in medical costs. With the application of GST, healthcare is moving away from a service-centric business model.
According to the letter, IMA demanded that Sisalaman withdraw room rent and GST of biomedical waste for the greater benefit of public health care.
“Similarly, a 12% surge in biomedical waste is unreasonable, increasing the cost of operating hospitals and clinics, and increasing the burden on patients. Putting these costs on patients. That’s not rational. It’s a difficult time, “said IMA.
The IMA also demands an emergency meeting on these serious issues and, in the meantime, withhold GST taxation on room charges and biomedical waste.
(Only the headings and images in this report may have been recreated by Business Standard staff. The rest of the content is automatically generated from the syndicated feed.)
Dear reader,
Business Standards has always worked hard to provide you with the latest information and commentary on developments that are of interest to you and have a wide range of political and economic impacts on the country and the world. Your encouragement and constant feedback on how to improve our offerings only strengthened our determination and commitment to these ideals. Even during these difficult times resulting from Covid-19, we keep you up-to-date with credible news, authoritative views, and sharp commentary on issues of relevant topics. I will continue to promise to keep it.
However, there is a request.
We need more support to continue to provide higher quality content as we fight the economic impact of the pandemic. Our subscription model has seen encouraging reactions from many who subscribe to our online content. Increasing your subscription to online content only helps you reach your goal of delivering better, more relevant content. We believe in free, fair and reliable journalism. Your support through more subscriptions will help us practice the journalism we are committed to.
Supporting high quality journalism, Subscribe to business standards..
Digital editor
..
