Last updated on March 9th, 2018 at 02:18 am
What will be impact of gst on pcd franchise companies as we purchase goods from companies on net rates.
Impact of GST at Pcd Companies:
GST is not making much impact at pcd market. Most important impact of gst at pcd market will be increase of Taxes. Remaining will be as usual. Most of companies use to provide net rates without taxes (excluding of taxes). Same will remain same. First you have to pay 2% cst or 5.25% vat on goods you purchased from company. Now you have to pay 12% GST on most of pharma products. Rates will be approximately same. May be slightly decrease or increase occur due to excise duty end and end of excise free zone respectively. But not impacted much. For pcd parties
As a pcd distributor, parties were enjoying excise free zone service but at raw material level excise were applicable. That was increasing rates of raw material. Same for areas which were not come under excise free zones. Excise were applicable that was applicable at 65% value of MRP. This increased the rates at much level. Now excise duty has been ended, hence it will provide the much relief to most of manufacturers. We are hoping raw material prices will come down and manufacturing cost too.
Maximum retail price may also be increased for products which come under DPCO because now MRP will be calculated at GST rates.
Hope above information is useful to you…