Healthcare cost set to rise, GST board imposes 12% tax on biomedical waste – Punekar News

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Pune, 11 July 2022: The decision of the Goods and Services Tax (GST) Board to impose a 12% tax on Biomedical Waste (BMW) facilities and a 5% GST on the rent of hospital rooms (excluding intensive care) are expected to increase the cost of health services.

According to health institutions, patients will ultimately be responsible for paying for the increased expenses. Under the leadership of Union Finance and Corporate Affairs Minister Nirmala Sitharaman, the GST Council met in Chandigarh last week and presented its recommendations.

The GST council’s suggestions led to the decision to levy a 12% tax on facilities that process biomedical waste. Additionally, the council recommended charging 5% GST on room rent (above Rs 5,000 per day), except for intensive care beds. The recommendations shocked both the public and the health industry.

According to Bomi Bhote, Director of Association of Pune Hospitals and CEO of Ruby Hall Clinic, the increase in GST will inevitably increase the cost of healthcare. How long can hospitals that are losing money keep operating? Health care should not be subject to the GST because it is a service sector. Most recently, the situation has started to improve following the COVID-19 pandemic. However, the government changes tax rates and increases the price of health care. As a result, patient health services will now cost more.

Dr Sanjay Patil, chairman of the Hospital Board of India, said it was difficult to tax only part of the lot, and patients could become confused as a result. City hospitals had already received letters from BMW service providers asking them to be prepared to pay new, higher garbage fees.

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