Goods and Services Tax and its Supply Chain Implications
Journal Title: International Journal of Management, IT and Engineering - Year 2017, Vol 7, Issue 10
Abstract
In any production system input passes through gradual transformation and final product comes out of productive system. In case of Sales Tax, end users are liable to pay the tax to the government but the introduction of Goods and Services Tax (GST) ensures payment of tax by each participating agent in the supply chain for every exchange taking place. “Supply‟ and „Supply Chain‟ are thus appearing to be the significant terms associated with the implementation process of GST. In addition to the expected benefits of reduced price of products for consumers, simplification of tax system, unification of markets resulting in national market for goods and services, it is also expected to result in integration of informal sector with the formal sector which is essential for the development of an economy. The above is expected to have an important impact on the economy because such integration makes govt. taxation policies successful in affecting each and every income generating activity/sector. The supply chain implications of GST in Indian context may be summarized as follows:Abolition of warehouses and directly sending the products to the Distributor-but that will raise the question of viability in terms of distribution time, freight cost etc. although that may reduce material handling cost, labour / human resource cost, rental cost of warehousesTransformation of traditional warehouses/godowns into big modernized warehouse especially in the metropolitan cities - Cities with locational advantages will experience increase in price of land/space.Differential impact of GST on distribution network of different companies-The new rates of taxation on specific type of goods or services in comparison to multiple taxes which were paid in the preGST era would be the reason for differential impact on different companies/products/services. The introduction of GST is also associated with apprehensions regarding stability of jobs for the existing workforce in private and public sectors of the economy, drastic changes regarding the existing facility location of the companies, further existence of multiple-taxation/ cascading and many others. This paper is an attempt to discuss the expected changes, opportunities and uncertainties associated with introduction of GST in Indian context.
Authors and Affiliations
Mr. Rudrangsu Biswas And Dr. Jayanti De
Keywords
Related Articles
- EP ID EP18882
- DOI -
- Views 353
- Downloads 19
A survey on Efficient Evolutionary algorithms for Web Service Selection
The web service selection mechanism plays an essential role in service composition; because most of the business applicants are in a situation to share their information‟s through online in a composite manner. Everyday...
slugAnd Three Dimensional Face Recognition Process
Facial recognition systems are computer-based security systems that are able to automatically detect and identify human faces. These systems depend on a recognition algorithm, such as eigenface or the hidden Markov mod...
slugSALT AND PEPPER NOISE REDUCTION USING MDBUTM FILTER WITH FUZZY BASED REFINEMENT
A Modified Decision Based Unsymmetrical Trimmed Median Filter (MDBUTMF) followed by Fuzzy Noise Reduction Method (FNRM) is proposed for the restoration of color images that are highly corrupted by salt and pepper noise...
slugSoftware Metrics- Usability and evaluation of software Quality
This research explains the results of a conducted study at consultancy of “usability”. This research about usability provides that the performance of the usability activities is very much profitable within a software d...
slugRole of information technology in dissemination and development of education
Information technology has been developed to provide education in different fields like marketing, engineering, arts etc . Some of the technological tools use information technology to spread...