No wonder that this sector also comes under GST as like other sectors now here in this blog post we explain you to key points effected major or minor parts of the manufacturing sector. Here is the main key points regarding this:
- Cost and Time Reduction for Transportation of Goods: Now everyone knows about this that because of GST multiple state permits, many state taxes are permanently removed from the tax structure so as the other kinds of tax are removed only GST is implemented so that cost and time automatically reduces. Also manufacturers now compete with each other directly now and prices goes down automatically of the goods.
- Raw Material and Production Cost Reduction: As GST effects on the tax structure to remove other unnecessary taxes and only a single tax structure causes the raw material prices goes down with the production cost also.
- Credit Mechanism Simplicity: Now it is clear that due to GST ,the cost of service provide( logistics included) are comes as value add , and the manufacturers gets benefits in the return filling. So this causes the price saving cost effectiveness.
- Reduction In Business Units,More Productive Results: As this can be explained like this many manufactures have their own warehouses like in all the other states and there are different state taxes in all other state. As this kind of picture make the margin of profit very less but if they reduced number of business units than they can gain maximum profit.
- Large Warehouses: This is as in above point many warehouses in many areas cause less margin, to handle this can use large warehouse on a single place and margin goes up. Also single ERP system used also make margin goes up as there are less warehouse now.
- Corruption Reduces: As if every manufacturer follow the rules of GST can have every work report, with full billing and accounting also pays proper tax on time to time basis,this will reduces the corruption in all the manufacturing industry and benefit goes to the people of India.
Now manufacturing industry accounts for 16% of GDP, with this GST structure with proper use gains more 1 to 2 % and give a boost to our country GDP,means more growth, more wealth.
GST का प्रभाव मैन्युफैक्चरिंग सेक्टर पर : सर्वश्रेठ GST सॉफ्टवेयर
Some good quality business software are listed here for GST:
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