An Empirical Study On Gst Post Epidemic In The Healthcare Industry

Abstract

The Healthcare industry is one of the world’s largest and fastest-growing industries. India’s public expenditure on healthcare stood at 1.2% as a percentage of the GDP. Due to covid 19 situation was high from 2020 to 2022 spending on healthcare products was rapidly increasing and the intensification of production of healthcare products and services was also equally increasing. On the other hand, GST played a powerful contribution to the cost of products, while covid 19 economic crisis was in peek so cost of the living has questionably affected the public as well as the industrialist. Which eventually led to getting subsidies and guidance from the government regarding the tax payment and tax rate reduction. The research in this paper examines the impact of the GST tax rate and its influence directly and indirectly on the cost of products and services. The methodology has been used for this research paper is a fully concentrated pharmaceutical manufacturing industry, retail outlets and healthcare service centres in Chennai city. To have better clarity, responses of 127 healthcare industrialist was taken for data analysis. For analysis of the data, the one-way ANOVA, Correlation of coefficient, Friedman test and Manova was performed by using SPSS.It is found that the pandemic effect has the strongest significance followed by the democratization effect on the healthcare sector towards the cost of the products and services which is influenced by many indirect factors in which the GST plays an important role. GST and government played an equal role in the cost of the healthcare product.  The results of the study will help the government of India as well as the healthcare sector to chalk out the facilities, awareness, satisfaction, improvement needed in the role of government in rendering the subsidies during the pandemic closure. The outcome will also help in the better way of governing the needs of the healthcare sector in this type of situation endeavour.  The results of the proposed study indicate that during the pandemic situation the struggle went through the healthcare sector and guidance support was rendered by the government of India in the field of taxation. During these uncertain times usage of healthcare products is been rapidly increasing and intensely the cost of the product and services are indirectly and directly affected. This study shows the importance of government awareness and the rendering of the subsidiaries in the healthcare sector that will be benefited from it.