With the advent of Goods and Services Tax (GST) regulation, India Inc is poised for dawn of a new era. GST, with long-term and wide spread reach, will have impact on businesses of all type and size. GST will incorporate transparency and improve the systemic productivity by reducing the tax bottlenecks. Businesses ought to understand the enormity of the changes brought by GST and be ready in a timely manner with the implementation tools.
Implementation of GST will impact the basic business operating model along with presenting new growth opportunities and room for sustainable margins. Organizations need to formulate business cases to evaluate the impact of changes, develop robust plan for overall program management and identify integration opportunities across various aspects of the entity’s value chain.
With GST, tax basis would be modified from origin to destination. This change in tax basis will have direct implications on various business aspects such as supply chain, ERP system profitability, cash flow, sourcing, pricing etc.