NEW DELHI: The Indian Medical Association (IMA) has appealed to the central government for complete exemption of GST on a broad category of essential and lifesaving drugs, including anti-cancer medications, anti-diabetic drugs, antihypertensives and cardiac medications.
The IMA, which has over four lakh doctors as members, also stated that the government should consider reducing GST on medical equipment, as they form a vital backbone of healthcare delivery.
“A reduction in GST rates would significantly lower operational costs for hospitals and clinics, making treatment more affordable,” said a statement by IMA’s National President, Dr Dilip Bhanushali, and Honorary Secretary General, Dr Sarbari Dutta.
Apart from GST exemption on cancer and diabetic drugs, they also urged the government for complete exemption for drugs used for chronic kidney disease, collagen vascular diseases, thyroid disorders, asthma, chronic obstructive pulmonary disease (COPD), osteoporosis, and serious infections, intravenous immunoglobulin and drugs used in haematological conditions like haemophilia and myelodysplastic syndromes.
In the statement, they also said that the Centre should streamline GST and TAN registration for IMA branches.
“Various IMA state and local branches are facing procedural challenges in obtaining GST and TAN registrations due to nomenclature-related issues. IMA seeks the Council’s intervention to enable a smoother registration process across the country,” the statement added.
“Hospital beds are essential healthcare infrastructure and not a luxury item. IMA strongly recommends that GST be completely removed on hospital beds to ensure affordability of hospitalisation,” they said.
They further added that GST on health insurance premiums should be removed to ease the financial burden on individuals and families, particularly in times of medical emergencies.
“This would encourage wider adoption of health insurance and improve healthcare access. IMA once again extends its sincere thanks to the GST Council for its responsive and patient-centric approach. We remain hopeful that the Council will give due consideration to the above pending matters, which are vital to strengthening India’s healthcare system and ensuring equitable medical access for all,” the statement added.
Apart from IMA, the All India Organisation of Chemists and Druggists (AIOCD), representing 12.40 lakh chemists and distributors nationwide, has also appealed to the Finance Minister and GST Council Chairperson, Nirmala Sitharaman, to bring all medicines under the 5% GST slab and place critical lifesaving medicines under the 0% GST (exempted) category.
AIOCD President, J S Shinde, and General Secretary, Rajiv Singhal, said medicines for cancer, kidney and cardiac diseases, chronic/rare disorders, and blood derivatives should be placed under 0% GST.
Their other suggestions are: all medicines, vitamins, probiotics, nutritional and food supplements, and baby food must fall under 5% GST; Ayurvedic medicines must not face higher taxation after the abolition of the 12% GST slab; preventive medicines and micronutrient supplements should remain affordable in line with “Prevention is better than cure.”
They also said that with the 12% GST slab being abolished, all medicines currently in that slab must shift to 0% or 5% and there should be clear guidelines to apply revised GST rates on stock purchased under the higher slab.