The Economic And Social Impact Of GST On Educational Institutions And Healthcare
- IJLLR Journal
- Mar 8
- 1 min read
Sriyanka Mohapatra & Ashmit Rungta, Birla School of Law, Birla Global University, Bhubaneswar
ABSTRACT
India's indirect taxation system underwent a dramatic change in July 2017 with the implementation of the Goods and Services Tax (GST), which replaced a convoluted network of levies like excise duty, service tax, and VAT with a single tax structure. GST has had a significant and varied impact on vital industries including healthcare and education, despite its stated goals of improving transparency, streamlining compliance, and removing tax cascades. Taxation on supplementary services has increased operational costs in educational institutions, particularly private ones, resulting in higher fees and reduced affordability for students from low-income households. Similarly, healthcare providers have seen cost increases in medical equipment, consumables, and diagnostic services, affecting affordability and accessibility for economically disadvantaged populations.
This research explores the economic and social implications of GST on these two sectors from implementation to 2024, focusing on financial hardship, compliance issues, and expanding urban-rural differences. The study also explores the impact of GST on public versus private sector service delivery, the indirect influence on skill development, and the availability of key services for underprivileged people. While GST has simplified taxation and enhanced digital compliance systems, the analysis highlights the need for targeted changes and exclusions to reduce the negative effects on these critical sectors. The research also identifies possible ways to use GST to improve service delivery by utilizing cutting-edge technologies like online learning and telemedicine.
