GST (Goods and Services Tax) was launched with the notion of ‘one nation, one tax’ and it has created a common economic market in the country where manufacturing is synergized, logistics is smoothened, and supply-chain has become more efficient for the tyre business. Industry experts feel positive for the 2018 and the future of the tyre industry in the country.
A list of some important changes that will most likely occur in the 2018 in the tyre business are explained here.
- Rubber-industry in the country has always suffered from a complicated tax regime where businesses had to pay a layer of taxes. However, with GST this situation is changing rapidly and the conditions are certainly going to be better in 2018. The introduction of GST ready software such as software for tyre business will help matters.
- A few complicated matters such as calculation of tax have already become easy for every taxpayer in the country including tyre traders. They do not have to calculate excise duty, VAT, service tax separately. Software such as the RujulERP for traders will take care of it. Now, they have to just calculate their taxes once and the job is done. Such big changes are saving a lot of time, clerical work, and funds for the businesses already.
- The value-chain of the tyre industry will affected largely from raw materials to finished goods, and imports in a positive way. This is because the overall supply-chain is optimized through GST making it more efficient than ever. The RujulERP – tyre software is likely to help tyre traders and tyre franchises to optimise their operations.
- Also, inter-state sourcing of raw materials and improved quality and price negotiations have impacted strategic business operations in a positive way. The market is unifying and the borders are virtually melting. This will result in improved inventory management, better trade-off between cost and customer service, expanded capacity, and greater flexibility in manufacturing.
- However, as petroleum products are excluded from GST and therefore, their prices are and will be fluctuating as always. Ever-changing global economic and political scenario is also a major reason for that. This will certainly affect the transportation sector and in return the tyre industry by slightly increasing the total costs. Nonetheless, introduction of tyre ERP software for better tyre business management will help reduce and streamline operations.
- Enterprises that are not properly organised can connect or tie-up with established companies for better opportunities for both of them. It will definitely be a win-win scenario for both the parties (tyre traders/ tyre franchise and companies) and the industry as large.
- Additionally, tyre traders that sell tyres without paying their taxes pose a threat to the organised tyre trade. However, this situation has already changed a lot and it will definitely be better after these businesses come in the loop of tax. Joining the established business ventures is a good way to do that. Businesses can use tyre ERP software like the RujulERP software for tyre business to solve their GST tax problems.