Tax Reforms in India: GST Implications on the Manufacturing Sector
India’s new tax reform is expected to take the economy on an upward trajectory and create an ease of trade. The Goods and Service Tax (GST) system, officially taking effect on 1 July 2017, will significantly impact the manufacturing industry and help sustain the economy. With the introduction of GST in place, manufacturing companies can experience greater efficiencies in logistics and supply chain functions. The elimination of cascading of taxes and a more effective input tax credit system under the GST regime would make locally manufactured goods more competitive in terms of importation. Furthermore, the GST bill will have a huge implication on the warehouse industry and is expected to boost profitability in logistics by 3-4%.
This white paper aims to address these main questions :
- 01. What are the differences between the new GST model and old tax regime?
- 02. How will GST benefit manufacturers in India?
- 03. What are the implications of GST in regards to logistics, warehousing, and the supply chain?