Health Policy

IMA urges govt to exempt health services by private hospitals from GST

The Indian Medical Association (IMA), a voluntary organisation of doctors with 2.7 lakh members under its fold, has urged the government to exempt healthcare services offered by private hospitals from the Goods and Services Tax (GST).

“We welcome the government’s decision on enforcing the GST and feel that it will increase transparency and improve efficiency in the country. However, we feel that the GST exemption of healthcare services offered by governmental institutions should be extended to the private sector as well,” said Dr K K Aggarwal, the national president-elect of IMA.

According to IMA, exemption of GST to private sector will result in several benefits including no increase in cost of healthcare being provided by the private sector, affordable healthcare services in India, eradication of any possibility of dis-incentivising future investments in the sector, among others.

Under present rules, healthcare services provided by all types of clinical establishments are exempted from service tax.

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