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GST on Manufacturing Business: Top five Things You Must Know

GST on Manufacturing Business, to learn how the entire GST framework works, and how manufacturing units react to the changes read this blog

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GST on Manufacturing Business: Top five Things You Must Know

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  1. KwikBilling GST Billing Software

  2. GST on Manufacturing Business: Top five Things You Must Know The impact of GST on manufacturing business so far - as per speculation and expert advice - seems to be favorable and it is expected that GST will improve competitiveness and performance of India's manufacturing sector. GST requires businesses and manufacturing units to set up standalone mechanisms to cater to the standalone requirements of GST. While compliance will bring transparency and reduce corruption and loopholes in the tax systems, it will increase initial costs to the businesses. However once businesses adapts themselves with the changing regulations; compliance costs is likely to come down automatically. Among Other Things, The Key Factors Include (Which Reflect In The Unit) State Incentives States usually come up with a set of incentives to influence and inspire manufacturing businesses to set up units. These incentives might be tariff incentives - such as lower tax rates, refund, deferment of taxes etc. Under GST, states might not get these advantages. GST might turn out to be little biased

  3. towards the consumption states because tax credits will only be available to them. Producer states will have lower financial incentives to offer as concessions. So, manufacturing units might not get tariff- based incentives in producer states. Free Supply Goods Free supply of goods was not earlier within the ambit of VAT. But under GST, free supplies of products might come within the tax bracket and thus giving away free products and goods might not be very popular within the manufacturing units along with other industries. Discounts Discounts will be treated uniquely under GST. Discounts offered before or at the time of supply might be considered to get deduction from transaction value. Discounts given after supply will be allowed but that is highly based on certain conditions.

  4. MRP Rules There was confusions among reatils and consumers about how the MRP changes will reflect under GST. Theowing light on the case, Department of Consumer Affairs Secretary Avinash Srivastava said "Under the GST regime, if a price of a product has increased the manufacturer/ importer/ packer will have to give an advertisement in two newspapers about the new MRP and put a revised sticker on the packaging." Source It is also stated clearly by the government that strict legal action will be taken against those who are found to disregard the rule. Wait And See! These are just a few of the important impact that are expected to be in the manufacturing unit post GST implementation . Reduction in cascading taxes thereby reduction in the overall price of a product, reduction of classification of disputes, supply chain restructuring are some of the other things that are important to notice during the change time. To learn how the entire GST framework works, and how manufacturing units react to the changes, we however need to wait and watch. But we can certainly expect the better for the entire industry and for the overall development of the country. GST will bring transparency and thus it will improve

  5. accountability and thus quality of products and volumes of sales. Overall, we can expect GST will be positively effect the manufacturing industry. About the Author With KwikBilling's software, creating invoice is indeed the easiest part of the job. Additionally, you are empowered to manage the invoice and expenses and ensure easy reporting, collect payments too. With KwikBilling's integrated invoice solutions, you would feel just hassle free. =========================================================================================================== Contact Now : Company : KwikBilling Website : www.kwikbilling.com Email-Id : kwikbilling.com@gmail.com Address : 108, 1st Floor Specialty Business Center, Balewadi, Pune, Maharashtra Phone : +91 9713030021 Pin code : 411045 ========================================================================================================== Social Platform :

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