INSUBCONTINENT EXCLUSIVE:
In November last year, however, the government revised GST on most FMCGs down from 28% to 18%.It's not all bad news when it comes to the
Goods and Services Tax (GST)
While micro, small and medium enterprises (MSMEs) may be drowning in hidden overheads, industries like auto manufacturers and fast moving
consumer goods (FMCG) have reasons to be pleased with the hidden gifts GST has given them
TheIndianSubcontinent looked into case studies and the numbers to find how each sector is handling the year-old tax regime.Indikala, a
four-year-old, one room business, was growing steadily, with a 260 per cent jump in turnover from the first year to the second
This year, Indikala grew a mere 8 per cent
artisans, making Rs 82 or Rs 88 on every 100 earned instead of the Rs 95 he was getting earlier, to even paying more for necessities like
"He used to file returns once every quarter, now he files them 16 times, and then the additional headache of that website, compliances, I
With profits flatlining, Mr
manufacturers, the dog days are over
Auto accounts for a massive 50 per cent of manufacturing in India, and 7 per cent of GDP (gross domestic product)
parts from different states, and every time these parts would cross state borders, the taxes would get embedded in the price," said Sugato
Sen, the deputy director general at the Society of Indian Automobile Manufacturers
customers mean happy businesses
After hovering between 3.5-7 per cent from 2012 to 2017, domestic sales growth for the auto sector shot up to 14 per cent in 2017-18
While price cuts amounting to lakhs for luxury cars drew flak for passing GST benefits to the rich, the highest growth came in sales came
for commercial vehicles, with a 25 per cent jump in sales for light commercial vehicles alone
In the passenger vehicles category, Maruti Suzuki (13.8 per cent), SkodaAuto (26.8 per cent) and Tata Motors (21.9 per cent) all showed a
healthy growth in sales.FMCG makes up one of the fastest growing sectors in the country
When the GST was first implemented, FMCG companies complained that it was above the effective rate in the pre-GST era, as it did not account
for production in excise free zones
In November last year, however, the government revised GST on most FMCGs down from 28 per cent to 18 per cent
this, too, pushed up sales
Sales growth for FMCG giant Godrej went from 4 per cent in 2017 to a whopping 10 per cent in 2018
that the new tax regime has definitely been a positive influence
