Finance Minister on Tuesday announced a rollback of the proposed 5 per cent service tax on healthcare services.
Mukherjee announced his decision to exempt service tax in “its entirety both in respect of services provided by hospitals, as well as by way of diagnostic tests until the goods and service tax (GST)comes in to force.”
In the Budget for 2011-12 Mukherjee had proposed a 5 per cent service tax on all services provided by hospitals with 25 or more beds that have central air-conditioning as well as conduct all sorts of diagnostic tests.