The advantages of GST to hospitals will be felt when the supply of equipments and major consumables would be made tax free.
With the passing of GST Act in parliament on 29th March 2017 and coming into effect from 1st of July 2017, the whole episode of indirect taxes got revolutionised. GST Law has replaced many indirect tax laws. The advantages of GST for business and industry are easy compliance, uniformity of tax rate and structures, removal of cascading effect through seamless tax credits throughout the value chain, improved competitiveness and finally with comprehensive set off of input of goods and services and subsuming of major central and state taxes. The advantage for the Governments are better control on leakage and ensuring better tax compliance, higher revenue efficiency and collection and the administration of GST being made simple.
Overall, it appears that GST is well received by all industries. But for the private healthcare sector, the scenario is different. Hospital operations are severely impacted. The concerns are:
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