By Mahhaguru Gaurav Mittal
Products which have a quick turnover and relatively low cost are
known as Fast Moving Consumer Goods (FMCG); Examples are toiletries,
soap, cosmetics, tooth cleaning products, shaving products and
detergents.
The expectation of the FMCG industry from Budget 2019-2020
1.FMCG industry has now become a low margin industry business and one
in FMCG business can sustain only on high volumes. GST on branded
products start from 5% to 12, 18 and 28% were on unbranded items its
zero percent; somewhere there is a need to bring the whole FMCG
industry under just one lowerest most GST range else it is giving a boost
to unbranded items.
2. A major cost component for deciding the product landing cost is
dependent on Transportation cost. Freights play a significant role in
the cost of the product and hence govt to look into fuel cost, toll taxes
, etc. and bring the transportation cost significantly down.
3. Unnecessary monthly returns are a headache. Monthly GST return is
really headache (2 returns are on month basis GSTR-1 & GSTR-3B right
now). some simple way and just quarter/ annual returns should be
sufficient otherwise they are giving a chance for corruption.
4. If GST remains the same on each category of the product then there is no
need for each category license; single HSN code and license should
suffice. it's a headache and giving a chance for corruption.
5. Companies expect the government to reduce Corporate tax 20%.
6. Payment of TDS should be the quarterly basis for small scale or MSME
Regd company.
7. Assessment or order should be complete within 1 year
Mahhaguru Gaurav Mittal is M.D of Mahhaguru Navgrah Private Limited