1. GST rollout, launch in India: New Tax regime will adversely impact sales, profits in short-term, says Dabur

GST rollout, launch in India: New Tax regime will adversely impact sales, profits in short-term, says Dabur

GST rollout, launch in India: FMCG major Dabur today said GST will leave a short-term adverse impact on its sales and profits due to destocking at trade channels but the tax reform will be beneficial in the medium-to-long run.

By: | New Delhi | Published: June 30, 2017 11:11 PM
GST rollout, GST launch in India, Gst in India, GST, new tax regime, tax in india, indian economy, tax, tax rates, new tax rates, vat, value added tax, latest news, modi government, indian government, latest updates, indian government GST rollout, launch in India: It is difficult to quantify the impact but the situation is temporary and as soon as the impact of GST is absorbed in the economy, it will normalise. (Website)

GST rollout, launch in India: FMCG major Dabur today said GST will leave a short-term adverse impact on its sales and profits due to destocking at trade channels but the tax reform will be beneficial in the ‘medium-to-long run’. However, the home-grown FMCG firm said it was difficult for the company to quantify the impact at this point. “Although the positives of GST is likely to be felt in medium and long run, the company is likely to experience near term adverse impact on its sales and profits, due to destocking at trade channels and other related transition costs,” Dabur said in a regulatory filing. It further said, at this transition phase, it is difficult to quantify the impact but the situation is temporary and as soon as the impact of GST is absorbed in the economy, it will normalise. FMCG firms are preparing for reduced stocks in their trade channels for a couple of months as anxious dealers cut down inventory levels in the run up to GST, the new indirect tax regime, from July 1.

 

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