Impact of GST on Senior Citizens

With the implementation of GST, the senior citizens or the elderly segment of our population, many of whom are disabled due to advancing age or other wise, are facing additional burden due to GST. Already, senior citizens do not get any concession for taxes that they pay except in IT, which is not much. They are to pay income tax, even for the savings out of the Fixed Deposits, if the interest received exceeds the limit laid down by the government. They get no concession in registration of the dwelling they live in or for the property/water tax that they have to pay on month month. There is no concession in Capital Gains Tax if they sell their property to meet medical expenses and decide to live in  a rented dwelling.

In an environment, where the cost of care increases with age and the interest rates are witnessing a downward spiral, the savings that they get from fixed deposits is dwindling. Due to longevity, which is primarily due to access to better health care, a person who retires at the age of 60 and lives up to say 85 years of age, will need to factor in 25 years of life after retirement. The saving that he or she did for himself and for the spouse after fulfilling the family commitments, is grossly inadequate since the value of money gets eroded with the passing of each day. Not every one is fortunate to get pension, which gets adjusted for inflation.

If the senior citizen is living in an apartment or in a house like any other citizen, he or she is not required to pay GST for their housekeeping helper or part time or full time cook or caregiver or part time gardener or security staff or for the staff employed for running of Reverse Osmosis Plant or Sewage Treatment Block in the apartment block or the Gated community where they live.  But the moment they live in a Senior Care Centre or in a Retirement Community, they pay GST for all this.  Is this fair?

For senior citizens living in Senior Care Centres/ Retirement Communities, every aspect of service falls within the ambit of care. To amplify let us take a few examples:

1. Housekeeping:

a. This is not a service but care, since the seniors living in the Senior Care Centres, need to get their dwelling cleaned for better hygienic living. Otherwise, the dwelling will become unlivable with dust and garbage, which is cleared by the housekeeping staff.

b. Can you expect an elderly citizen suffering from Stroke or a lady suffering from Osteoporosis or anyone suffering from Dementia, Alzheimer or Parkinson clean the room in the care centre or their house? Surely for their care and clean living, they need the senior care centre which may be cleaned not once a number of times in a day. Because of their physical or mental condition they need this service, which is in effect part of their care.

2. Medical Service/care:

These residents have to pay for their medical care like anyone living in an apartment or a house of their own in a real estate complex. But they need to pay GST while those seniors living in normal real estate complex do not pay, since health care is exempt from GST. Doctors, nurses and caregivers provide the medical service, and they are the employees of the retirement community or senior care centres. So is medical service not care? How is it different in a retirement community or senior care centre?

They get the following:

1. Medical centre for basic medical attention including short term detention for therapy.

2. Physiotherapy/Rehabilitation (both short and long term) for those needing physiotherapy and who need to be rehabilitated after such ailments like Stroke or Knee or Hip Surgery etc.

3. Making available nurses 24X7 as well as Caregivers to those needing such help such as those with restricted mobility or bed ridden or suffering from Osteoporosis or Dementia or because of age etc.

4. Para-medics to go with patients in ambulances during emergencies.

5. Security of the Elderly – this is a very important aspect as elders feel insecure with age.

6. Internal transportation within the community by eco-friendly electric carts.

7. To take bedridden/home bound patients outside within the community in wheel chair at least once a day.

8. Escorts for the elderly to visit hospitals to see Specialist doctors.

9. Counseling by professional counselors/Psychiatrist for those suffering from Depression, Dementia, Parkinson, Nervous Disorder or Anxiety Neurosis etc.

10. House keeping assistance to keep the house and toilets clean.

11. Normal and special diets.

12. as per requirement and as advised by a doctor.

13. Emergency evacuation to hospitals by in-house ambulance and para-medics.

14. Funeral services.