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Saturday, July 01, 2017

Overall GST is a win-win legislation, long awaited by the industry..!

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.



Overall GST is a win-win legislation, long awaited by the industry..! Reviewed by S. Chitra on July 01, 2017 Rating: 5 Quote from Mr. C K Ranganathan, Chairman & Managing Director – CavinKare Pvt Ltd on GST implementation in India. Impact of GST on c...

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