healthcare providers: FICCI seeks zero-rating GST on healthcare providers

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Trade physique FICCI has sought zero-rating GST on healthcare providers to allow the service suppliers to assert enter tax credit score. In a letter to the Finance Minister Nirmala Sitharaman, the chamber’s President Sanjiv Mehta mentioned “enabling this is able to not solely make sure that the enter tax credit score chain is unbroken however can even make compliances simpler and make sure that the enter taxes should not loaded into the price of healthcare providers”.

“Therefore, it’s our honest request that the exemption of healthcare providers from GST could kindly be discontinued, and the healthcare suppliers be allowed to avail the enter tax credit score,” he added.

Sharing its views on the suggestions made within the latest GST Council assembly, the chamber mentioned the incorporation of 5 per cent GST on room lease (exceeding Rs 5,000 per day) will go on to extend the price of healthcare service to the sufferers.

“Additional, the room lease is normally part of the bundle price for a therapy, and taxing just one part of the bundle will create confusion and can result in deconstructing of the packages, which is towards the present follow being inspired by the federal government,” FICCI President mentioned within the letter.

He mentioned beneath Ayushman Bharat-PMJAY scheme and different medical insurance schemes, the federal government has been encouraging the non-public sector to maintain the sufferers knowledgeable of the price of total therapy by means of bundle charges.

“Moreover, these taxes are rising the price of compliance for the hospitals and making your complete compliance course of extra perplexing. This may defeat the federal government’s intention of bringing about ease of doing enterprise,” Mehta mentioned.

He additionally highlighted that over the previous couple of years, the online impression of revised tax charges on inputs (items and providers) consumed by hospitals has elevated, together with the taxes on a number of the medical equipments.

“As this incremental price is finally borne by the sufferers, it won’t serve the intention of the federal government to offer reasonably priced healthcare to all,” Mehta added.

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