Service Tax on Healthcare Services may back with GST

The Lok Sabha passed the budget proposals minus the 5% service tax on healthcare and diagnostic services provided by high-end hospitals that was withdrawn following widespread criticism.

Finance Minister Pranab Mukherjee , however, indicated the levy, dubbed as ‘misery tax’, may be back once the comprehensive goods & services tax is rolled out.

“The purpose of the new levy was not merely to mobilise revenue, but to pave the way for the introduction of the GST ,” Mukherjee said on Tuesday.