Budget 2019: Wishlist of FMCG industry

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

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