The Bill as brought up by the newly elected Central Govt. is basically the same old wine in new bottle, with minor changes. It will reduce the cascading effect of taxes on the final price of the product. Eliminate tax-on-tax effect. No more Tarikh pe Tarikh pe Tarikh…oops Tax pe Tax pe Tax pe Tax.
What Is GST –
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer
Benefits of GST to the retail sector/ GST bill advantages to retail sector –
- GST is a transparent tax and also reduce the number of indirect taxes.
- It will also help to build a transparent and corruption free tax administration.
- The procurement of raw materials: movement of goods would become less cumbersome, which opens gates for more suppliers /vendors to merge.
- Following this, a wider base of distributors would be available as state boundary paperwork will not be a hurdle,
- Resulting in better access and low transportation costs.
- A favorable environment for a supply chain will reduce in transit inventory that will further reduce the working capital requirement.
- Simplified taxes & availability of input tax credits can also help fetch better margins.
- GST will lead a more transparent and neutral manner to raise revenue.
What Retail expert Said –
President & CEO Walmart India, Krish Iyer said,
“Implementation of GST will reduce transaction cost of doing business, also reduce food wastage and bring down prices. Hence I am confident that it will not only bring relief to the consumers but also help retail sector and building supply-chain efficiencies in India in a big way. This is thus a win-win legislative reform for all,” he added.
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