NATHEALTH recommends zero GST, tax holiday for healthcare

6 122
Dr Sudarshan Ballal, President, NATHEALTH

As the Indian government prepares to present the Union Budget 2020-21 on February 1, 2020, healthcare industry body NATHEALTH, in its pre-budget recommendations, has called for building capacity in Tier-II & III cities which will cater to the growing demand for quality healthcare in rural areas as well.

NATHEALTH has recommended Zero GST for healthcare services.

“Rationalization of GST for healthcare input services would lead to the unlocking of the differential input credit and will ease costs for all healthcare providers including nursing homes, clinics, hospitals and diagnostic centres. This saving will be passed on to the end consumers and will lower the cost of care,” NATHEALTH has said in a joint memorandum with FICCI.

“Under the current GST regime, the net impact of revised tax rates on inputs consumed by hospitals has increased. As this incremental cost is ultimately borne by the patients, it defeats the intention of the Government to provide affordable healthcare services,” said Dr Sudarshan Ballal, President, NATHEALTH.

“In our pre-budget recommendations also, we have strongly recommended that to spur investment in the sector, the Government could consider a tax holiday period of 15 years for hospitals,” he added.  

Siddhartha Bhattacharya, Secretary-General, NATHEALTH, said, “A priority sector status will act as a catalyst for channelizing funds for the sector from financing agencies. Higher investments would ensure quality infrastructure in Tier II & III cities and rural areas. Such a move would also ensure that the societal objectives of the Government are adequately met.”


  1. Be first to post your comments

Your Comment

Your email address will not be published. Required fields are marked *


Back to Top