Being 3rd largest producer of pharmaceutical products in the world and no. 1 in generics production with a volume worth a 14th rank of the world, it is not easy to change and make a change every day for Indian pharmaceutical industry. This industry is contributing over 5% to the country’s GDP which comes around 150 billion dollars by this financial year ending. As it was around 80 billion in 2012 government of India is also targeting on some such medication developments like cancer to attract more foreign development investments and has raised the capital to make it more worthy of growing up in the international pharmaceutical market.
With all these impressive numbers and dedication by franchise of pharma companies in the growth of our nations the industry is bound to pay some 8 profound taxes to be seen and sold in the market even after getting all the necessary approvals from the drug pharma test labs and government. Scientists and technicians working behind a successful drug development are not the only people making the drug available to the mankind but the managers and accountants as well. Each drug had to pay some 8 to 10 taxes each time before they reach the consumers hand. But now after the implementation of this new accountancy and taxation rule we call Goods and Services Tax AKA GST.
All these technical and imaginative minds have to do is concentrate on the development and forget about the costing and the final costing of the products after all the taxes applicable, if that comes under state tax or the central tax etc. as now we have this wonderful system of taxation called GST and this is now easy to calculate the actual cost of a product without being an expert of accountancy.
In other words, we can now expect the heavy machines and lifesaving pharmaceuticals in a small town or in another corner of the country from where it produced , at a same price as it is on a shop right next to the production center because of the GST and a centralize taxation. No one can deny that medication becomes costlier due to state taxes and road transportation taxes. Each and every Indian national has this right to have the best medication and GST is ensuring that it reaches to all who are in need. So in a fact of industrial growth the GST taxation is a game changing formula to make us one centralize nation.
This article is published by the experts running the franchise of pharma companies to help you understand the impact of GST on healthcare sector. If you have any doubt, ask in comments below.
Pharma Info 