Supply Chain: Reforming Tax Incidence

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Published on Wed, Feb 06,2013 | 13:00, Updated at Wed, Feb 06 at 16:27Source : Moneycontrol.com 

The purpose of this article is to espouse that the Indian supply chain experience suggests that structures adopted have been a legacy of the influence of past sales tax (or Value Added Tax (VAT)/ Central Sales Tax (CST)) regimes; and such supply chain structures will become less relevant and merit re-imagination in near future with reduction in CST and introduction of Goods and Services Tax (GST) appearing on the horizon (circa 2014 by recent reports). Also, it argues that continued sectoral liberalization, eg, multi-brand retail will play an increasingly important role in the evolution of the Indian supply chain construct.