Separate Bills for Hospital Services, Medicines: Proposal fo
The all-powerful Goods and Services Tax (GST) Council is likely to consider a proposal on Saturday that will make it mandatory for hospitals to separate hospitalisation charges from medicines in a bid to check leakages in GST. Such a move will bring transparency and help consumers to understand the expenses.

“There is a thinking that hospitals should have separate bills for medicine and hospital services… This will bring transparency for consumers as well,” an official aware of the proposal told the Economic Times. The proposal is expected to come up for discussion in the council on Saturday, the official highlighted.

Hospitals typically add charges for both medicines and hospital services in the bills. It may be noted that medicines and consumables attract GST, while hospitalisation services are exempt from tax. It is worth noting that apart from cosmetic surgery and hair transplant, healthcare services are essentially GST exempt.

The main concern for the tax department is that healthcare service providers like hospitals and nursing homes could be charging in-patients for GST on medicines, but the tax amount may not be reaching the exchequer due to bundling of bill of hospitalisation charges and medication, the report said.

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