Quote from Mr. C K Ranganathan,
Chairman & Managing Director – CavinKare Pvt Ltd on GST implementation in
India.
Impact
of GST on consumers & industry from FMCG Industry perspective
The
country would benefit immensely by the introduction of GST, a path breaking and
transformative legislation. GST would play a lead role in enhancing tax
base and cultivating the culture of compliance given the technology & and
audit trail based compliance structure. It would also reduce inflation
given the overall cost reduction to the end consumers.
As
regards the Industry, the GST would address three of its major concerns viz.
(1)
permitting input credit in respect of all forms of tax paid on raw materials
and services incurred in all the States of the country
(2) enhancing the
ease of doing business and at the same time reducing the cost of compliance;
and
(3) providing level playing field for the industry by curtailing scope for
unaccounted sale by certain section of the industry.
In addition, the
industry would also save a lot in logistics and working capital costs as the
need for piling up and waiting of trucks on inter-state check-posts would be a
thing of past and need for multiple warehouses for tax planning would be
replaced by need based warehouse planning.
These would naturally lead to
reduction in the cost of its goods sold.
Indian
consumers of the FMGC goods would benefit by reduction in cost of goods
purchased and increase in their purchase power.
 |
| C K Ranganathan, Chairman & Managing Director - CavinKare Pvt Ltd |
The reduction in the illegal
and unaccounted trade would result in enhanced tax revenues which would be
re-invested for the overall developmental activities of the country, indirectly
benefiting the consumers.
Overall
GST is a win-win legislation, long awaited by the industry.
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