With other countries in terms of volume, India is the countries which produce the largest amount of generic medicines and nearly most of them are being sold from the Medical Store in Kolkata. Not every Indian is aware of the fact that Pharmaceutical industry of India occupies the 3rd position in the world. It is necessary to improve the healthcare services since the population is growing by leaps and bounds. In this sector, more than 5% of the Gross Domestic Product is invested.
Yes, you heard it absolutely right. The essential price of drugs is to be increased by 2.3%. The eyebrow of every industry has been raised since the GST bill has been passed recently. It might not be beneficial for the pharmacy industry, though the government felt that this Goods and Services Tax Bill will ease the taxation process. As far as employment and revenue are concerned, it is considered to be a major sector.
It’s Impact On The Pharmaceutical Industry
Its effect on the offline and Best Online Medical Store in Kolkata is expected to be more constructive, though the healthcare industry will be benefitted as a whole. On this industry, currently around eight types of taxes are imposed. The complete taxation structure will get streamlined, as the GST bill comes into action. This will not only make the tax system less complex but also will subsume all the various taxes. To make everyone understand, who belong to the industry, the government felt the need of having a uniform tax system which will ease the pressure of the customer.
GST And Pharmaceutical Companies
As the surging effects of manifold taxes will get minimized, the way through which the business is done in this sector will become easier. With the improvement of operational efficiency, this will rationalize the supply chain of the country. The distribution and strategy can be reviewed, as this will provide the pharmaceutical companies with a larger opportunity. There will an improvement of overall compliance, along with the flow of tax credit, which will become constant. As the Central Sales Tax will be withdrawn, one of the main benefits which companies can gain through GST is the reduction of overall transactional cost. The manufacturing cost for the medicines will also get lower.
What To Worry About?
It is quite that whether the life-saving drugs, medical devices, and healthcare services will continue to become tax – free, once the GST comes into force.
Conclusion: Despite all these effects, there are some stores like “Frankross Pharmacy”, who will continue to provide good services to the people.