Even as healthcare remain exempted under GST, prices may rise
DSIJ Intelligence / 01 Jun 2017
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Even as the hospital services are exempted from taxes under GST, the healthcare sector may experience a blow from the GST implementation as the increased tax on outsourced workers will hike operating cost.
Even as the hospital services are exempted from taxes under GST, the healthcare sector may experience a blow from the GST implementation as outsourced services along with the aesthetics and outpatient pharmacy are subject to GST tax imposition.
Most private hospitals employ a large number of outsourced manpower, thus increasing their operating cost, as this segment will witness an increase of 3 per cent in taxation. In case of a rise in blended tax paid on inputs including consumables, the healthcare sector will witness a hike in the price of services rendered to the customers.
However, the other input will not witness any significant increase or decrease in its prices under GST. Healthcare stocks were trading in green at the time of writing this report. Apollo Hospitals was trading at Ra 1264.70, up by 4.43 per cent at 11:30 hrs IST on the BSE.
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