This extract is reproduced with permission:
This is a boon for companies looking to manufacture in India. GST will provide a much-needed boost for the country’s manufacturing sector as tax credits across states will reduce the cost of sourcing inputs. The consolidation of taxes will also reduce the cost of doing business and the benefits of natural consolidation will create economies of scale.
For Shopmonk, which imports luxury and high-end products into India, standardised GST allows the company’s prices to be consistent across the country, which further simplifies its pricing mechanism and paperwork, Shopmonk CEO Mr Kunal Narula said. He pointed out that customs duty is not affected by GST, so despite the increase in compliance measures, it is still a boon for importers.
Read more from Enterprise Singapore’s Doing Business in India.
Credit: Enterprise Singapore