New Delhi: Passage of GST bill will help the industry consolidate supply chain and ease logistical burdens brought about by the old tax regime, consumer electronic and home appliance makers have said.For latest news on Business & Budget 2017, like us on Facebook and follow us on Twitter.
Decrease in effective rate of tax from around 25 per cent to 18 per cent will be a big help and the benefit brought about by this change will trickle down to the consumer, said Panasonic India & South Asia President & CEO and Panasonic Corporation Executive Officer Manish Sharma.
"This also gives a chance for a brand like ours to consolidate our supply chain and ease logistical burdens brought about by the old tax regime," said Sharma.
Haier India president Eric Braganza also welcomed the step saying: "This is a good move for the industry. It would give price benefit to the consumers."
The Consumer Electronics and Appliances Manufacturers Association (CEAMA) said that it was a further step towards increasing the ease of doing business in the sector.
"GST will further contribute to the economic growth by uplifting the overall stature of local manufacturing by cutting down the logistical and transactional costs," said CEAMA in a statement.
However, it also added corporate institutions must be wary of the initial accompanying challenges in the form of increased compliance costs and alignment of IT systems as government sets up the GST IT infrastructure and the GST council to ensure a seamless implementation.
"GST will aid in aggregating tax revenues which in turn will allow government to spend more on infrastructure, IT and future investments thus, benefitting the consumer electronics industry and thereby, the overall economy," said CEAMA.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)