Revenue Secretary Tarun Bajaj on Tuesday stated there was scope for further pruning of the GST exemption listing and expressed hope that the “rough edges” within the oblique tax regime can be ironed out within the subsequent 2-3 years. He further stated that the rise in GST assortment was on account of a number of components, like elevated financial exercise post-Covid, and higher compliance, apart from inflation. The 5 per cent GST on non-ICU hospital rooms costing above Rs 5,000 is not going to hit inexpensive healthcare for a big part of folks and the affect of the levy would solely be miniscule,
Bajaj stated. “So if I can spend Rs 5,000 on a room, I can perhaps spend Rs 250 on GST. This GST, which comes into a common pool, will be used for poor,” he stated.
Responding to the representations of the trade, Bajaj additionally rejected the demand for zero-rating for healthcare trade saying such “carve-outs” might generate comparable calls for from different sectors, like training, and put upward strain on taxation of different objects within the GST web. Industry physique Ficci in a letter to the finance ministry on Monday stated that 5 per cent GST on non-ICU hospital rooms above Rs 5,000 will enhance the price of healthcare providers.
(This story has not been edited by Business Standard workers and is auto-generated from a syndicated feed.)
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