India Inc braces for...

He added that ERP (enterprise resource planning) platforms would need rapid reconfiguration to reflect new rates, leaving little room for error.

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Input duty correction is the adjustment that a business makes in situations when the GST on the purchase (raw material) is higher than the tax paid on the finished product, in order to claim a refund.

In addition, there are other financial implications which go beyond pricing.

"Businesses will need to prioritise system changes and carefully evaluate pricing, as some rate changes could lead to credit accumulation and higher working capital requirements," Abhishek Jain, indirect tax head & partner at KPMG said.

He suggested that companies need to start preparations immediately, including transitioning MRPs for existing stock and updating labelling.