Impact of GST
GST has been a tax reform and hence has affected each section of the operations. Commenting on the it, Jain mentions, "It is still early to account for the benefits of GST on the complete supply chain. But we are sure that it will improve our cost competitiveness as we will be able to reduce the incidence of additional tax on interstate movement as well as the efficiencies that will come up in transit of goods. In our endeavour to optimise our Parts and Information Flow, GST will play a significant role in reducing the lead times. Another benefit that we are seeing is the rise in input tax credit as some items in the previous tax regime were not under the purview of claiming the input credit. After the introduction of GST, the gamut of claiming credit on input items has increased barring a few items which appear in the exception list."
Agreeing to him, Budhiraja opines, "The biggest impact is now, is the availment input tax credit, whereas earlier some of the vendors in market would not even provide a bill and tax receipts. Now the situations have changed everyone in the market is either providing taxed invoices or is complete losing business. With the aid of GST the cost of production and procurement has been further minimized. With the credit period of 30 days only as GST returns has to be filled has further pushed the economy forward."
On his concluding remarks, Singh mentions, "The introduction of the Goods and Service Tax in India is a landmark tax reform since Independence. Over the past four decades, JCB has created an ecosystem of local suppliers and all of these have ensured a seamless transition to the new tax regime. JCB conducted various sessions with its supplier partners to ensure this transition. The new unified taxation system which aims at improving the overall ease of doing business in the country has had a significant impact on the logistics sector. Taxation at a national level, rather than by each state, has made inter-state transportation efficient, paperwork for transporters seamless, and turnaround of materials much quicker thereby enhancing the overall operation efficiency and bringing down the logistics costs."
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