I am Dr. Nilesh Bhimani (B.D.S.), a senior Dental Surgeon from Surat (Guj.) & I would like to throw some lights on effect of GST on Dentistry! Goods and service tax (GST) is one of the most revolutionary step in history of Indian Tax System and future will witness it's real effect. Healthcare services are exempt from GST according to GST Act, 2016. So we don't need to charge GST on out treatment charges as we are not selling products, we provide only healthcare services.
If you are looking for second hand dental clinic equipment then visit our dental portal DentistFriend.com
There is a lot of buzz about GST; I see many people are talking and discussing whether GST is good or bad on the contrary I know many dentists who neither care for the GST effects nor even willing to know how it is actually going to affect the future of private dental practice. I am writing this blog for all those dentists who are curious & wish to know the after effects of GST with the hope that you will take it positively.
Let's understand how GST is going to affect future and success of your private dental practice. Here are few points which I noticed and would want you to pay attention.
A. All standard Laboratories have transform tax statement from 5% VAT to 12% GST, means 7% rise on lab bills.
B. All material companies have changed taxation from 5-12% to 12-18% or up to 28% in few cases, means 7-16% rise in billing.
It's a big amount really..!
C. My clinic electricity, telephone , SMC tax, stationary, maintenance, printing, magazines or other monthly based expenses rise from 5% VAT to 12% GST, means 7% rise.
D. My clinic Insurance, Membership fees, Conferences fees etc will be also raising to some extent.
E. My staff salaries, doctor's salaries etc will have to be raised in coming months as they have to compensate for their increased expenses due to implementation of GST.
F. Most important is my personal expenses.
Now onwards my life insurance policies, general insurance policies, lifestyle expenses, food bills, school fees, Tuition fees, shopping , holidays (which is maximum like 28% on luxury holidays)everything I do on my day to day expenses will rise like anything. Friends, We say everyone that we don't need to add GST on patients treatment bills because we are exempted.
But are we really exempted on GST even after paying all above expenses?
There is only one solution for all above and that's none other than RAISE YOUR TREATMENT CHARGES!
From 1 July onwards minimum 10% rise on your treatment charges would only compensate for the GST which you will pay now onwards & don't think that you have raised charges, instead you have compensated your loss only.! In addition, 6-8% is your inflation rate which means every year your cost of same expenses increases at this rate over a period of one year. So 6-8% hike in charges will again compensates loss of steady income year by year.
So Friends, 16-18% (10% GST effect + 6-8% Inflation) rise in your treatment charges will only make you stable in your income year by year. Those who can add more than 18% rise in charges are real brave dentist and I will be happy to add them in my friend list. In fact, this is the best chance to raise your chrages as a momentum. Agreed people will ask you that it is not in your branch but you can tell them that your lab bills, material expense, clinic expense everything rise by more than 10-15% and so you have no other option if you want to justify but most of the times people will automatically justify you without asking about it.
I have tried to give you some striking GST effects on your dental practice. Hope we all put a step ahead for a successful dental carrier! Try it today..! Keep Smiling
Source : DentistFriend
No comments:
Post a Comment