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Impact of GST on Healthcare Industry

The Goods and Service Tax (GST) is for the benefits of healthcare industry as it has abolished the complex tax structure and allowed businesses to gain profits while benefiting the consumer by providing affordable healthcare.

In all sectors of healthcare products such as hospital management firms, health maintenance organizations (HMOs), hospitals, biotechnology products and other medical products, there has been similar effects of GST.

Streamline taxation structure

Earlier, there were, eight types of taxes are imposed on the pharmaceutical industry. GST aims to abolish this and unify them into a single tax system.

Improves operational efficiency

Earlier, the medical companies needed to revisit their business model and revise their procurement and distribution strategy. But, with the introduction of GST, it will improve their operational efficiency and increase profits by approximately 2 percent.

Reduction in transaction and manufacturing costs

By the effect of GST on healthcare industry, it will reduce the transaction and manufacturing costs of products.

Inverted duty structure

GST aims to change this by getting rid of the inverted duty structure or through a refund of the credit obtained. This will boost growth in the healthcare industry.

There are other impacts of GST, to know those, read:

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