GST Rejig: Cos Need to Tweak Strategies

As the Centre prepares to implement a restructured goods and services tax (GST) regime by this Diwali, businesses are bracing for sweeping adjustments across pricing, supply chains, and technology systems.

- Pushpita Dey @ New Delhi

The proposed rationalisation of tax slabs are expected to reshape operational strategies, mainly for small and medium enterprises.

Analysts said moving products from lower slabs will provide relief to consumer-facing industries but will require businesses to reassess retail pricing and inventory positions.

"Companies will need to reassess pricing across product lines, review distributor arrangements, and communicate changes to consumers. Stock lying with taxpayers at the time of rate change often creates practical issues," said Neha Shrivastava, associate partner, indirect tax, Forvis Mazars (India). Thus, companies will have to evaluate financial impact on pricing, as well as how rate cuts are passed on to consumers.