Agra: In the wake of the Gorakhpur hospital tragedy where lack of oxygen supply due to delayed payment led to the death of 30 children, the medical fraternity has raised concerns over the more than three-fold hike in rate of tax on medical oxygen under the new Goods and Services Tax (GST) regime. Earlier, there was an exemption on excise tax (12.5%), so only 5% VAT (Uttar Pradesh) was being charged on medical oxygen, which is now being taxed 18%. Indian Medical Association president Dr KK Agarwal said it is "highly unfair" and also "illogical" since GST on most life-saving drugs has been kept at 5%.

“Medical oxygen is a critical life-saving commodity. So, there is no logic to keep GST on it so high,” he said, adding that the government should have thought about this. “We will take this matter up with the government soon,” he added.

Puneet Kalra, chairperson of medical traders’ welfare association, Agra, said it made little sense why medical oxygen had been clubbed with protein powders, multivitamins, etc.

Umesh Potphode, senior business development manager, Inox Air Products, one of the suppliers for cylinders and liquid oxygen to medical institutes across the nation, told TOI, “This is a critical life-saving commodity and hence should have the least or no tax on it.”

Medical superintendent of Aligarh’s JN Medical College, Prof Haris Manzoor Khan, said they will soon be receiving the first stock of oxygen (liquid and cylinders) post GST and they will have no other option but to increase the rates for patients using it. “So far we have not raised any rates but since we will have to pay more, the cost has to be recovered from the patients,” he said, adding that the entire hospital budget has been affected.

When contacted, oxygen supply in-charge of Agra’s SN Medical College, Dr SC Jain, said that they have received the bill for the supplies with the new GST rates and the same has been sent to the finance controller.