Taxation system has a significant impact on supply chain design of organizations. At present, the logistics decisions are taken based on the taxation system rather than to optimize the operational efficiency. Organizations prefer to have warehouses in each state where it is doing business. In such a scenario, the interstate movement of goods is considered as internal stock transfer and hence CST is not levied. This arrangement has led to an inefficient network of warehouse adding additional cost on the balance sheet of companies.
It is important for companies to understand the GST implications on supply chain and reassess whether their […]