Domestic manufacturers of electronic devices will benefit from the goods and services tax (GST) system because manufacturing costs will be greatly reduced. According to a study done jointly by ASSOCHAM and NEC Technology, “Local manufacturers will be able to reduce their profit in taxpayers to bring it down to the customer.”
According to the study, the implementation of GST will eliminate many taxes and wide impact of taxes.
Along with that, the companies will also get rid of the warehouses and transportation expenses, which are around 5-8%.
The study said, “Low tax, simple tax structure and technology based tax compliance system will provide an ideal environment in the direction of improving electronics manufacturing in India.”
According to the joint study, “GST will give a big boost to the Indian electronics industry, which will increase the demand for equipment made by local manufacturers.”
ASSOCHAM-NEC study said, “With the implementation of GST, electronic manufacturers will be spending the warehouses and transportation expenses.”
According to the report, “After demonetisation, The government is promoting digital payment by bringing e-payment platforms like Bhim and Bharat QR, which will increase demand for mobile phones.”
Studies have said that India will become a major center of manufacturing.