Most of the consumer durable, automobile as well as the FMCG companies are gearing up for the transition to the Goods and Services Tax (GST) regime.

Kamal Nandi, Busines Head and Executive Vice-President, Godrej Appliances, added, “We believe the timing of the roll out of the GST by July 1, will be right as it will come after the crucial sales quarter for cooling products. This will also give consumer durables industry enough time to prepare for the festival season.”

He said that while the industry awaits more clarity on the finer nuances, companies are already analysing various scenarios to understand its impact on their businesses.

Analysts though pointed out that while large corporates have begun the process of assessing the impact on their business, supply chain and IT systems, small and medium businesses seem to be lagging behind.

Krishan Arora, Partner, Grant Thornton India LLP, said, “The bigger challenge is the piecemeal distribution of legislative structure-related information in public domain with the model law already having being modified few times. This poses a big challenge for India Inc to finally assess the tax implications of various transactions in GST regime, which then have to be implemented into ERP platforms which itself is a mammoth task.”

Lalit Malik, CFO, Dabur India, said, “We have already completed the impact analysis of the pre and post-GST scenario, along with an external consultant. Dabur has also completed the groundwork with regard to amendments in our IT infrastructure to ensure a seamless transition.” The industry believes that it is better if the GST is rolled out at the earliest, as they do not want uncertainty.

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