The Indian Medical Association (IMA) has requested the central government to remove the GST on a wide range of essential and lifesaving medicines. This contains drugs for treating high blood pressure, diabetes, cancer, and heart conditions.
The government needs to consider reducing GST on medical equipment, as they are the backbone of healthcare delivery, IMA, which has over four lakh doctors as members, expressed.
“A reduction in GST rates would significantly lower operational costs for hospitals and clinics, making treatment more affordable,” IMA’s National President, Dr Dilip Bhanushali, and Honorary Secretary General, Dr Sarbari Dutta, specified.
Besides the GST exemption on cancer and diabetic drugs, they asked the government to exempt the drugs that are utilised for chronic kidney disease, collagen vascular diseases, thyroid disorders, asthma, chronic obstructive pulmonary disease (COPD), osteoporosis, and serious infections, intravenous immunoglobulin, and drugs used in haematological conditions like haemophilia and myelodysplastic syndromes.
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The Centre should facilitate GST and TAN registration for IMA branches, in the statement they cited.
“Various IMA state and local branches are facing procedural challenges in obtaining GST and TAN registrations due to nomenclature-related issues. IMA seeks the Council’s intervention to enable a smoother registration process across the country,” as per the statement.
“Hospital beds are essential healthcare infrastructure and not a luxury item. IMA strongly recommends that GST be completely removed on hospital beds to ensure affordability of hospitalisation,” they added.
To lessen the financial burden on individuals and families, GST on health insurance premiums must be eliminated, especially during medical emergencies.
“This would encourage wider adoption of health insurance and improve healthcare access. IMA once again extends its sincere thanks to the GST Council for its responsive and patient-centric approach. We remain hopeful that the Council will give due consideration to the above pending matters, which are vital to strengthening India’s healthcare system and ensuring equitable medical access for all,” the statement outlined.
Before the Finance Minister and GST Council Chairperson, Nirmala Sitharaman, the appeal has been submitted by All India Organisation of Chemists and Druggists (AIOCD), representing 12.40 lakh chemists and distributors nationwide, to bring all medicines under the 5% GST slab and place critical lifesaving medicines under the 0% GST (exempted) category.
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AIOCD President, J S Shinde, and General Secretary, Rajiv Singhal, said medicines for cancer, kidney and cardiac diseases, chronic/rare disorders, and blood derivatives must be charged under 0% GST.
Some additional recommendations are that under 5% GST, all medicines, vitamins, probiotics, nutritional and food supplements, and baby food should be levied; after the abolition of the 12% GST slab, there must be a lower tax on the ayurvedic medicines. Preventive medicines and micronutrient supplements must be cheaper in line with “Prevention is better than cure.”
All medicines after the removal of the 12% GST slab should be shifted to 0 to 5 percent, and specific norms must be applicable on the revised GST rates on the stock purchased under the higher slab.
