The Healthcare Federation of India (NATHEALTH) has suggested a 5% GST rate on the healthcare supply chain like medical equipment supply to hospitals. Presuming that the GST rate on the sale of diagnostic services by the hospitals to the patients will likely to be kept exempted from the indirect taxes.
In a written recommendation letter to the GST council, NATHEALTH requested that the tax cost in the healthcare supply chain should be kept low in order to ensure accessible and affordable healthcare services to the poor people who fail to afford better health services.
Mr. Anjan Bose, Secretary General, NATHEALTH wrote to the Council, “A rate of GST ranging between 8-10% as applicable today for Medical Equipment supplies to hospitals will help achieve neutrality, a lower rate will support the private healthcare sector, a higher rate will increase cost in the private sector and reduce investment opportunities,”
“While we fully welcome the revised version of the Model GST law and proposals, it is our humble request that benefits/exemptions-– as envisaged under ScheduleIV vis-à-vis Government hospitals/clinical establishments should also be granted to the hospitals/clinical establishments in the private sector,” he added.
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NATHEALTH said in the letter that in order to encourage our ‘Make in India’ initiative, it is our job to make the Government/GST council aware about necessary provisions in the law to carry out export-oriented operations without paying any GST.
Mr. Bose said, “We are very hopeful that all of these aspects would be considered by the Government while setting the GST rates and exemption structures in place.”
NATHEALTH showed out that tax policy which can ensure a better working of the healthcare sector after GST implementation.
