Consumers will benefit from GST to a certain extent: Medical experts

Namrata Devikar
Friday, 30 June 2017

Pune: Medical experts opine that though healthcare is exempted from GST, there will not be any direct impact on services but in the coming six months, there is a possibility of increased costs for a few things. However, directions set by the government in the recently announced National Health Policy along with GST should set a positive road map for the sector.

Amol Naikawadi, Joint Managing Director, Indus Health Plus said GST is a remarkable step taken by the government and exempting healthcare from it will help consumer to some extent.

Pune: Medical experts opine that though healthcare is exempted from GST, there will not be any direct impact on services but in the coming six months, there is a possibility of increased costs for a few things. However, directions set by the government in the recently announced National Health Policy along with GST should set a positive road map for the sector.

Amol Naikawadi, Joint Managing Director, Indus Health Plus said GST is a remarkable step taken by the government and exempting healthcare from it will help consumer to some extent.

“Due to input tax levied on products and services, it will impact the costs for healthcare providers. The companies working in this domain will absorb the cost themselves to a certain point, however, in the long run, the consumers will have to pay for the service cost,” noted Naikwadi. He said the healthcare services should be included in GST at a nominal rate.

“This will ensure that all transactions in the healthcare sector will be mapped in the system. The government will get additional revenue and the healthcare organisations will get benefit of input tax credit. There is limited input on the overall cost of healthcare to the end consumer,” said Naikawadi.

Anjan Bose, Secretary General at NATHEALTH said the decision to exempt healthcare services from GST is welcome. “The decision will provide much-needed support for progress of the healthcare sector. We recommend rational rates on goods such as devices, equipment and diagnostic related to medical and health sector,” said Bose.

“Rational rates would certainly push ‘Make in India’ campaign and set a positive road map for the health of the country,” he added.
He added that the directions set by the government in the National Health Policy should set a positive roadmap for the sector.

“This should also send a positive signal to investors for infusing much-needed funds into healthcare and accelerate innovation for improving access to affordable healthcare,” said Bose.

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