The Central Government after the devastation of COVID imposes 18% GST on health insurance and 5% GST on hospital beds!
This decision was met with heavy criticism with citizens already facing financial difficulties and joblessness. Last week, the GST Council decided that hospital room rents (excluding ICU) exceeding Rs 5,000 per day per patient shall be taxed at 5 percent without the input tax credit. The healthcare industry seeks suspension of 5% GST on increased rates on rental hospital rooms.
Healthcare industry body NATHEALTH on Tuesday asked the government to put into abeyance the newly announced hiked 5 percent GST on hospital rooms with a rental value of above Rs 5,000 per day, terming it an additional burden on the sector.
The services in the hospital rooms are an intermediate input feeding into the overall healthcare services which is currently outside the GST net, it said.
The Congress reacted and said, “After all the devastation caused by Covid, you’d think the Modi govt understood the importance of accessible healthcare.
But instead, the Modi govt has gone ahead and imposed 18% GST on health insurance, and 5% GST on hospital beds.
Thank you, Modi Ji.”
After all the devastation caused by Covid, you'd think the Modi govt understood the importance of accessible healthcare.
But instead, Modi govt has gone ahead and imposed 18% GST on health insurance, and 5% GST on hospital beds.
Thank you Modi Ji. pic.twitter.com/n6PPFLHwUs
— Congress (@INCIndia) July 5, 2022
While hospital care should be affordable for all, it is disturbing that healthcare is rising when people are already struggling economically. People are still recovering from COVID and struggling to pay the outrageous medical bills that have wrecked their savings, and while millions of rupees are thrown on extravagances of the government such as statues, vista building, and purportedly buying MPs during elections, nothing is done by the government to enable affordable health care. It is all about priorities and purpose.