Health Ministry seeks low GST on services

The letter was sent a couple of weeks ago after diagnostic centres and hospitals threatened to increase charges of services. Before the implementation of the GST, the levy on maintenance of contract was 15 per cent, which was increased to 18 per cent. For health insurance, the tax bracket was increased from 15 to 18 per cent post-GST. 

For a hospital bed, it was increased from 11-16.5 per cent to 18 per cent and for oxygen from 12.5-15 per cent to 18 per cent. Pacemaker and heart valves are now under the 12 per cent bracket, up from five per cent. Sources said the Health Ministry also received a representation from the Association of Healthcare Providers.

“Providers have said that they are under distress as all the services which had five per cent of tax have been increased to 12 and above under the GST,” said the source.