1. Rate where multiple indirect taxes subsumed into 1 rate making it administratively much easier 2 manage &
2. the impact of it on biz.
since a lot hs bn discussed on rate aspect by now I wud like share my thoughts abt impact of GST on biz.
1/n
Its imp 2 u/s how indian mfg industry was structured in pre GST era.
a full container load from chennai 2 delhi used to take @ 14-16 days.
2/n
the delay was majorly on count of border stoppages & state regulations.
now imagine the time it would take to reach material to every nook n corner of country.
3/n
what this means is a cmpy wud set up factory in a region to serve primarily that region thereby cutting down on logistics hassles.
4/n
5/n
some entities wud set up a w/h in another region whch thy wud feed frm main plant.
6/n
7/n
Also note that this model required huge nos of commercial vehicles which explains the surge in CV's sales over past few decades..
8/n
with removal of border hassles, transportation across the country has become seamless with travel times reducing by as much as 30-40% on certain sectors
the improvement in quality of roads since GST has also added to reduced travel time
9/n
10/n
11/n
this will help manufacturers to cut down a lot on their expenses which will eventually help to make their base price lower..
12/n
this can help us to target global markets
with softening real int rates we are ideally suited to take off in this direction
13/n
This shift in biz model could result in loss of jobs at few places but addition of jobs in consolidated location but one neednt panic due to this.
14/n
states wl compete on meaningful parameters & wl b sprucing up things in their state.
15/n
It’s a work in progress. while many manufacturers are already in the process of this shift, there are many who would be evaluating this change but it wilI happen sooner or later
16/n
key is to not get bogged down by every slow down but be assured that these will take us leaps ahead in times to come..
17/17