Dealers to halve stocks as GST roll-out nears

FMCG, durables, pharma firms say they remain unclear about transition gains and losses

The goods and services tax (GST), the biggest tax reform since Independence, is likely to lead to much disruption in trade as transition fears grow in the run-up to its introduction on July 1.

Retail and wholesale trade Business Standard spoke to (across fast-moving consumer goods, durables and pharmaceuticals) admit they remain unclear about transition gains and losses, prompting them to scale back on inventory requirements by 50-70 per cent from current levels.

“I am speaking to manufacturers on a daily basis to understand what is the tax I land up paying and what is the reimbursement or input credit