A Case Study on Implications of GST on Pharmaceutical Sector with Special Reference to Epitome Hospitals

Abstract

India's healthcare industry has grown significantly in both employment and income. Healthcare comprises medical facilities, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment. The Indian healthcare sector is growing significantly due to better services, coverage, and greater spending by both public and private
institutions. One important element that has the capacity to cover both the country's economic foundation and its margins is the goods and service tax. Furthermore, India is not only among the bestperforming nations for generic medications; it is also seeing a growth in medical tourism, which increases revenue for the healthcare industry. Currently, India's pharmaceutical sector is ranked 15th overall in terms of respect and third overall in terms of volume. The need for high-quality healthcare services is growing along with the population, which necessitates the hiring of more qualified personnel to fill workforce gaps and offer patients state-of-the-art facilities and technologies. Prior to the implementation of the GST, life-saving medications were exempt from excise and customs duties. The GST changed the situation where certain States levied a 5% tax on medications. The inverted tariff system that hurts domestic producers is one of the main issues facing the healthcare sector; however, once it is in place, GST will benefit the healthcare industry, especially the pharmaceutical industry. The pharmaceutical industry would gain from the taxation structure being simplified because it was previously subject to eight different forms of taxes.