GST on Hospital Room Rent: The Controversy and the Litigation on the anvil on Exemption to Room Rent exceeding 5,000/- per day for ICU

Taxes should be implemented in such a way that it should be free from legal disputes and litigation. But, it is happening otherwise with the Indian Taxation System. Here is the latest one.

In the recent press release after the Council Meeting the authorities had announced removal of exemption for hospital room rent (excluding ICU) exceeding Rs. 5,000/- per day per patient.

Now, it is considered that GST rate will be 5 % without ITC on normal hospital room rent and all types of ICU will be excluded

In the recent notification issued now, it is announced that the said exemption is available for Intensive Care Unit (ICU), Critical Care Unit (CCU), Intensive Cardiac Care Unit (ICCU) and NeoNatal Intensive Care Unit (NICU).

The issue now under deliberation is whether other types of ICU like – Surgical Intensive Care Unit (SICU) , Medical Intensive Care Unit (MICU) , Pediatric Intensive Care Unit (PICU) etc. will be eligible for the said exemption or not?

If one looks at the intent, it was to cover all types of ICU but now giving exemption to limited types of ICU has put everyone in a dilemma