Your hospital bill is going to increase! Preparations are being made to levy 5% GST on room charges

Preparation to levy GST on room rent above Rs 5000.

Image Credit source: ani

GST Council is considering imposing 5% GST on hospital room charges. In this meeting, charges have been increased on some products and services, which is being implemented from July 18.

Recently the GST Council (GST Council) had an important meeting. Some such decisions have been taken in this meeting which will increase your hospital bill. If the room charge of a hospital is more than Rs 5000, then 5% will be charged on it. GST ,GST on Hospital rooms) can be applied. After the council meeting, from July 18, the rates of GST on many products and services are going to increase. At present, the final decision has not been taken regarding GST on hospital rooms. By the way, ICU i.e. Intensive Care Unit has been kept separate in this. Till now the healthcare sector was kept out of the purview of GST. Due to this, no GST was levied on room charges. In this meeting, it has been considered to bring healthcare services under the purview of GST.

At present, the final announcement for imposition of 5 per cent GST has not been made. People in the hospital industry say that this will increase the bills of the patients and they will be in trouble. Hospital expenses have already been high in the Corona epidemic. From bed charges to equipment charges, everything has become expensive. In such a situation, due to the implementation of GST of 5 percent on the room charge, the bill of the patients will increase further.

In 2015, there was a luxury tax

Such is the condition of private hospitals that if the doctor examines the patient wearing a safety kit or meets him, then its fee is also added to the bill. Let us tell you that in the year 2015, before the GST came into existence, luxury tax was levied on hospitals. It was withdrawn after protests. Once again imposition of 5 per cent GST is like a refund of luxury tax.

The luxury tax is coming back

In a report published in the Bengaluru Mirror, S Nagendra, general manager of Aster RV Hospital, said that levying GST of 5 per cent is tantamount to refund of luxury tax. Patients will have to bear the loss of this. He said that most hospitals will pass this charge on to the patients. They are not in a position to bear the burden of this charge.

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Charges above Rs 5000 for most rooms

Jagdish Hiremath, chairman, Asra Group of Hospitals, said that the equipment we buy is inclusive of GST. Despite this, we do not get the benefit of input tax credit. Let us tell you that the room charges for most private hospitals are more than Rs 5000.