Are You A Doctor Looking For Financing Options? Know How GST Affects You
Doctors are regarded as lifesavers, and some of them aspire to set up their own medical practice. However, this requires capital and one can apply for a Doctor Loan to finance this.
However, with the Goods and Service Tax (GST) around the corner, you need to know how it affects you and your finances. Set to roll out from July 1, 2017, GST aims to unify the central and state taxes and bring them under a common umbrella. GST will affect every industry, including those in the medical profession.
Effect of GST on Healthcare Services
One of the major benefits of GST is the reduction in the overall cost of the technology. Currently, the technical machinery and equipment imported into the country are very costly. Under GST the duty levied on the import of such equipment might be allowed as a tax credit.
There are currently eight different taxes being levied on this industry and GST will unify and integrate this complex structure into a single taxation system.
One of the major issues that GST addresses is the inverted duty structure. The GST structure intends to either dispose of the duty structure or introduce a refund of the accrued credit. This proposal will be the biggest advantage for the healthcare sector.
GST will reduce overall transaction cost by eliminating Central Sales Tax (CST). It will also lower the manufacturing cost and improve operational efficiencies. The cost of transporting drugs from one state to another will reduce, as inter-state taxes and tolls are abolished in GST bill.
The unified taxation system will encourage new players to enter the manufacturing aspect of the pharmaceutical market and provide services at competitive prices. The cost of raw material will also decrease, leading to more profits and allowing more investors to invest.
Also Read : A Handy Guide To Doctor Loans
Why do Medical Professionals Need a Loan?
Loans can then be used for renting or leasing office space, buying equipment and hiring staff. The loan can also be utilised by established clinics to renovate their premises or upgrade their equipment to keep up with modern technology.
With better services and facilities, one is able to provide the right treatment for their patients, which results in an increase in business. Finance options for doctors usually fall into the unsecured category, meaning that they do not require a guarantor or collateral to secure a loan.
Doctor loans are available to salaried and self-employed doctors. It requires lesser processing time, has higher approval rates, flexible tenors and lower interest rates. To conclude, there is a suitable doctor loan for every practitioner.
To sum it up
This is the right time to start a business, especially in the healthcare sector. With easily available finance options from various lenders, you don’t have to delay your decision of starting your practice. You can use the funds for expanding your scope of practice, buying machinery and so on. Lenders are offering exclusive loans for doctor at attractive interest rates and flexible tenor options. So, get the financial support you need and take your practice to new heights.