The Goods and Services Tax (GST) Council decided to impose a 5 percent GST on non-ICU hospital rooms with room rent exceeding Rs 5,000 per day at its 47th meeting, which took place on June 28–29, 2022. On July 18, 2022, the 5% GST on these hospital rooms will start to apply. This choice was made by the GST Council as part of a larger effort to rationalise tax rates.

Since the above announcement was made a few days ago, the industry has been very critical of the government’s decision to levy this new tax, and officials have defended their actions.