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Tax relief for recovery: GST concessions can go a long way in supporting businesses

Tax relief for recovery: GST concessions can go a long way in supporting businesses

Various measures have been taken by the government to tide over the Covid-19 storm. It has announced relief via relaxations in GST compliance. Price controls have been imposed on various essential commodities. Recently, it also announced exemptions on customs duties and health cess for some products. GST rates should be suspended/reduced on critical items, including surgical masks, disposable gloves, ventilators, hand sanitisers, etc.
Hospital services are exempt from output GST.

However, hospitals routinely incur several input taxes, including huge GST outlay on capital procurement of equipment, and recurring GST on medical devices/ items/drugs and services such as rent/marketing/R&D. As ITC facility is not available for exempt-supply, these credit costs are built into the price.

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