The Indian Healthcare Industry has been growing at a remarkable rate in the past few years, achieving a 14th position in the world in 2019. Owing to the plans of implementing various technological and medical advancements in the field of medicine, the Health Ministry has targeted better healthcare for all Indian citizens within the next three years.
It has been largely accredited to substantial changes in the advancement and application in the medical industry. Moreover, with the implementation of GST, almost every industry in India has witnessed a change in their functioning and revenues. The medical industry is no exception in this regard.
Impacts of GST on the medical industry
The new tax regime has largely impacted by subsuming almost 8 types of direct taxes into one. These effects are listed below –
- The unified tax will do away with the cascading effect, thereby reducing the overall manufacture and transaction cost. Consequently, most pharmaceutical products will now be available at a lower price than before.
- Pharmaceutical supplies will increase due to enhanced operational efficiency due to the introduction of GSTIN. It is a 15 digit tax registration number that will aid in conducting business activities.
- You can also file your GST return to avoid penalties or late fines. The process of how to file GST return is simple and intuitive. One can visit their official website and follow provided instructions to get it filed.
- The cost of the technology involved in the medical industry will reduce due to GST implementation. Cutting edge equipment will be easily imported without levying too many taxes.
- GST has impacted the manufacturing sector too with the abolition of Central Sales Tax that will, in turn, reduce the manufacturing cost of pharmaceutical and medical products.
Impact on medical tourism
By slashing the GST rates in India, the government has been successful in impacting medical tourism sector as well. India is known to be one of the greatest providers of medical packages including both medical treatments and accommodations for people who are travelling here for availing better healthcare.
Additionally, the cost of insurance, international travel, and other pharmaceutical services have witnessed an overall reduction, thereby allowing the buyer to make the most of GST implementation.
The GST calculator for buyers will help them in assessing the cost they are likely to incur while travelling to India for healthcare benefits. However, every aspect of a transaction must be registered with GST so as to be legally bound for services that are being extended to the customers.
In lieu of the same, the Government of India has eased the registration process too so that anyone irrespective of a purchaser or a seller can register their goods and services hassle-free.
In the backdrop of simplification of the process of GST registration, availing loans has also become easier. There is no more service tax charged on loans, thereby making it an affordable option for many.
Alternately, you can also opt for a suitable lender to meet your financial needs. In this regard, renowned financial institutions like Bajaj Finserv can offer business loans at affordable interest rates. They also provide pre-approved offers to existing customers that simplify the loan application procedure.
The tax structure has been completely revamped following the implementation of GST. There have been significant changes that help both patients and clinics meet their desired service quality.
The medical industry has reaped the advantages of GST both in terms of operation as well as by adding value to the overall medical industry. As a result, the functioning has been simplified by incorporating transparency which has been the greatest advantage out of all the latest impacts of GST.