The Silver Lining of Goods and Service Tax for Retailers and Wholesalers
GST has been rather positive for the retail sector with the first one being reduced taxes, where GST reduces the tax burden on retailers as they had to pay many different forms of tax pre-GST such as CAT, CST, service tax etc. GST helps streamline everything into one single tax which in turn makes it easier for the retailer to understand and pay in one shot. Also, there is an increased efficiency in the supply chain since the business can be carried out in every state upon a single registration and the retailers don’t have to maintain warehouses in every state which is beneficial to them.
The transportation industry will also benefit from this since they would carry more goods from one state to another. the supply chain will benefit tremendously as the cost of transport and warehousing will reduce under the new GST laws and help the retailers scale their profits, which could also lead to reduced prices for the final consumer over a period.