In light of the recent GST reform developments and the Group of Ministers’ (GoM) endorsement of the Centre’s proposal to simplify GST slabs, we would like to bring your attention to the significant implications for the healthcare sector . The proposed changes – eliminating the 12% and 28% slabs – will directly impact the cost structure for hospitals, diagnostic labs, and other healthcare providers.

Please find below the statement from Dr. GSK Velu, CMD – Maxivision, Neuberg and Trivitron, reflecting on how these reforms align with the industry’s goals of reducing costs and improving patient care –

“Prime Minister Modi’s forward-looking GST 2.0 reform framework signals a transforming moment for healthcare affordability, boosting the solid foundation for India’s future as a global leader in healthcare delivery.

India, today, is on the cusp of becoming a global healthcare hub for diagnostics, med-tech and medical value travel. Hospitals and diagnostics are not just service providers; they are lifelines for millions of patients. However, effects of the cascading tax burden on equipment, reagents and consumables, inevitably seeps into the system, resulting in higher patient bills.

These reforms are not only a win for the healthcare sector, but for the public at large.

• Reduction in Equipment Costs: Medical devices and diagnostic equipment, often burdened by high taxes, will now likely fall under a lower GST category, reducing their cost and enabling providers to upgrade their infrastructure without facing excessive financial strain.
• Input Tax Credits for Healthcare Providers: The introduction of input tax credits for healthcare services is a much-needed reform that will allow hospitals and diagnostic centres to offset their input tax expenses. This will lower the overall cost of healthcare services, making them more affordable for patients across India.

This alignment of policy intent with industry advocacy is a welcome sign – because every rupee saved in embedded taxes can be redirected towards improving care, expanding access and re-investing in cutting-edge technologies.

At Trivitron, we have always believed that affordable innovation is the key to transforming healthcare delivery in India. By supporting the rationalising of GST and streamlining of compliance, we are not lobbying for mere business convenience; we are advocating for the right of every Indian to access world-class healthcare at the right cost. This is a crucial step towards achieving the nation’s goal of universal healthcare, where cost does not become a hindrance to accessing quality healthcare.

I look forward to seeing these reforms come into effect and positively impact the lives of millions of Indians who rely on affordable and accessible healthcare.”

— Dr. GSK Velu, CMD – Maxivision, Neuberg and Trivitron