Post GST impact

1. Impact of GST on
Supply Chain

2. GST
Stands for Goods and Service Tax
Broad based, single, comprehensive tax levied on goods and
services consumed in an economy

3. Taxes subsumed under GST
IGST
+

4. Typical supply chain

5. Impact of current practice
Current tax regime enforce the manufactures to have their warehouses or C&F agents
in each state to get the benefit of input tax credit.
Stock transfer sale

6. Impact of current practice
CST sales to distributor
To maintain the same price and to preserve the margin of Distributors and Retailers
the firm have to hit its own margin because unlike VAT, CST can not claimed as input
tax credit.

7. Impact of GST
Eliminate CST and apply GST directly to the distributors

8. Major impact of GST
• Reduce operational/admin/logistic cost
• Reduce cost of good sold(COGS)
• Speed up time to market
• Any service/process/raw material involved
in supply chain will be tax credit
• Lean supply chain

9. Benefits
• Lower price and more consumption
• More production and Exports
• More employment opportunities
• More growth for the companies and economy
• Reduce paper work
• Ease of compliance
• Reduction in cascading effect of tax
• Efficient deployment of resources
• Transparent and uniform tax system across India
• Reduce Tax evasion

10. Thank You