GST Council On Health-Care Services


The Federation of Indian Chambers of Commerce and Industry (Ficci) has written to Union Finance Minister Nirmala Sitharaman, seeking zero-rate GST for health care services to enable service providers to claim an input tax credit (ITC).

Industry and trade chambers have voiced concern at some of last week’s decisions of the Goods and Services Tax (GST) Council, such as taxing hospital room tariffs and bringing unbranded packaged consumer items within the tax net.

Taxing Times

A 5% levy on hospital rooms (above Rs 5,000 per day) will increase the cost for patients.

It will create confusion as room rent is normally part of the treatment package, says Ficci.

Hospitals won’t be able to claim ITC in case of 12% GST on biomedical waste.

Taxes are increasing the cost of compliance for hospitals, it says Taxing unbranded food items may cause a huge loss of business for foodgrain traders, says CAIT.