India Inc gears up for GST overhaul from October

New Delhi, Aug 19 (KNN) Indian businesses are preparing for significant changes as the government’s proposed Goods and Services Tax (GST) revamp is set to roll out in October.

Industry experts warn that the transition will be complex, especially with the festive season approaching.

Companies will need to manage pricing adjustments, supply chain restructuring, and IT system upgrades simultaneously.

Key sectors such as FMCG, textiles, consumer durables, auto, and pharma are expected to feel the maximum impact. Manoj Mishra, Partner at Grant Thornton Bharat, noted that firms facing inverted duty corrections will need to carefully manage cash flows and working capital.

He emphasised that ERP platforms must be quickly reconfigured to reflect new rates, leaving little margin for error.

Abhishek Jain, Partner at KPMG, pointed out that businesses must immediately begin preparations such as updating MRPs on existing stock and revising labelling.

Rate changes, he said, could lead to credit accumulation and higher working capital needs. Similarly, Pratik Jain of Price Waterhouse & Co stressed that a thorough value chain review will be vital to address working capital exposure and ensure that reduced tax benefits are passed on to consumers.

Saurabh Agarwal of EY India added that while a full IT overhaul may not be necessary, timely updates to tax rates in invoices and e-invoicing systems will be essential. Experts agreed that companies must leverage the lead time between announcement and rollout for a smooth transition.

According to Hinduja Group’s Amit Saharia, the reforms could unlock benefits across sectors — from simplified supply chains for manufacturing and logistics to better margins for consumer businesses and process improvements in IT.

If implemented effectively, the October rollout could boost consumer sentiment, turning compliance readiness into a competitive advantage.

(KNN Bureau)