Executive Director of Heritage Foods Nara Brahmani said that GST is progressive and a very welcoming reform for India. Speaking at the GST Day celebrations in Hyderabad on Saturday, she said that the regime will increase ease of doing business in the country. “We will be witnessing unified market facilitating seamless movement of goods across states and also potential reducing transaction costs in the long run”, she said.
Brahmani talking about the impact of GST on Heritage held that various tax barriers such as toll plazas, check-posts was a lot of wastage especially for perishable goods like dairy and this loss converted as major costs. With GST, there will be much more transparency in transactions. She said that the new tax regime converts the informal sector to a formal sector which to her means financial inclusion in the long run. Brahmani pointed that registration compliance of traders will increase and quoted that of the 80 lakh already 70 lakh merchants got registered. She appreciated the move of the government to decrease tax slabs on essential items like diary and food grains.
Brahmani asserted that transition process is extremely well planned and very robust as technology enablers. As a firm, Heritage decided that, if there is any decrease in rates for products like Ghee and Doodh peda, it would be given to the consumer fully. Wherever there is increase in costs like ice-creams and frozen desserts, the company without impacting the customers is trying to bear the burden and make the progress seamless.
The ED held that since the reform is fully digitised system, it will take some time for everybody to get used to it. She said that the impact on big companies like Heritage is less but believed that SME’s need some hand holding. The real impact or benefit of the regime will be understood only after 3-6 months and also said that she doesn’t see a problem beyond a couple of months.
