Gst India
Overview
GST (Goods & Services Tax) is the biggest taxation reform in India. The present indirect tax regime in India will be replaced by a dual GST with Central and State GST to be levied concurrently by the centre and the respective states. GST is expected to integrate State economies and boost overall economy. In GST model through a tax credit mechanism, the tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain. Implementation of GST will have significant impact on many aspects of the business especially Supply Chain and Logistics, distribution and sourcing strategies, Inventory costs, IT investments and others.
In my analysis I have analysed the present demographics of India and mapped out the distribution network as it should be based on the current demographics and tax laws. I have then forecasted the demographics, economies, transport facilities as might possibly be in 2020-21 and designed a distribution strategy suitable for them and the possible tax laws (successfully implemented GST) present in 2020.
During my study I also analysed the prospects on India as a manufacturing hub for pharmaceutical industries. The possibilities and advantages of having pharmaceutical manufacturing centres in India were also explored.
Problem Definition
The present tax structure in India necessitates the presence of CFA/Warehouses in all the states to achieve CST tax waivers. This has resulted in following key issues faced by the company:
• Higher warehousing cost
• Higher number of CFAs / Warehouses
• Complex distribution network
Implementation of GST will have major impact in each of the aforementioned key issues and will eliminate inefficiencies faced by the company.
Deliverables
a) Study the Indian demographics and economy and make projections for 2020
b) Study the Indian pharmaceutical market and make projections for 2020
c) Ratify the future of India as a manufacturing centre
d) Structure a suitable
GST (Goods & Services Tax) is the biggest taxation reform in India. The present indirect tax regime in India will be replaced by a dual GST with Central and State GST to be levied concurrently by the centre and the respective states. GST is expected to integrate State economies and boost overall economy. In GST model through a tax credit mechanism, the tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain. Implementation of GST will have significant impact on many aspects of the business especially Supply Chain and Logistics, distribution and sourcing strategies, Inventory costs, IT investments and others.
In my analysis I have analysed the present demographics of India and mapped out the distribution network as it should be based on the current demographics and tax laws. I have then forecasted the demographics, economies, transport facilities as might possibly be in 2020-21 and designed a distribution strategy suitable for them and the possible tax laws (successfully implemented GST) present in 2020.
During my study I also analysed the prospects on India as a manufacturing hub for pharmaceutical industries. The possibilities and advantages of having pharmaceutical manufacturing centres in India were also explored.
Problem Definition
The present tax structure in India necessitates the presence of CFA/Warehouses in all the states to achieve CST tax waivers. This has resulted in following key issues faced by the company:
• Higher warehousing cost
• Higher number of CFAs / Warehouses
• Complex distribution network
Implementation of GST will have major impact in each of the aforementioned key issues and will eliminate inefficiencies faced by the company.
Deliverables
a) Study the Indian demographics and economy and make projections for 2020
b) Study the Indian pharmaceutical market and make projections for 2020
c) Ratify the future of India as a manufacturing centre
d) Structure a suitable