Why look at business
Many businesses today are structured on the base of strategies for indirect tax optimisation.
We often see businesses create a distribution model full of depots across all states of the country to reduce the tax impact.
Many activities such as trading are restricted from factory premises and are often discouraged.
Activities such as assembly are often the topic of dispute between businesses and the government on whether it would amount to manufacture.
Plant locations are often determined by fiscal incentives by the central or state government such as excise free zones or state subsidies.
All these will need a relook in the GST era, when business priorities are likely to win over tax priorities as taxes will be more or less equal in all situations.
What are companies doing
Many Indian businesses started restructuring their operations in light of GST - some of them as early as 2012. Some have reduced depots, some have planned a shift to manufacturing from pure import and sale model, some have redefined their businesses to add newer products to their kitty sometimes even procuring these even from a third party supplier – as tax
restrictions reduce many new ways of doing business and ways of doing new businesses can be thought of. Ideas are many and they come when we think deeper and think together.
Are you willing to look at your business? If you are, we can share some of the success stories and also some thoughts with you which may be interesting in light of your current business models. You may like to think differently from your competitors and bring value to your customers as also a new different experience.
Our tax, supply chain and IT teams can guide you with the same, together they would help you understand different facets of impact of GST on your current business structure.