Hindustan Unilever, the country’s biggest consumer goods company feels it is too early to say. However, he feels the introduction of GST is a boon for those who pay taxes.
It’ll take a year to entirely estimate the unethical companies who did not pay taxes or for the market structure to gain a balance.
Local brands have taken away the market share from leading consumer product companies, especially in segments such as soap, detergents, hair oil, tea and biscuits, with more than 500 unorganised players operating in these categories.
Rin detergent and Lux soap reported an increased sales volume growth since 6 years in the December quarter.
In the tea segment, unorganised players and loose tea operators control 40% of the market by just operating in one region or district.
Under the new tax regime, the introduction of an e-way bill is under process.
Also, the government will assign ratings to trade and industry on the basis of its compliance, which will discourage people to trade with those having lower scores.
Introduction of GST means that all companies will find it extremely difficult to evade tax.
This means that ethical companies will do well and unethical companies will either shut down or will have to start being ethical.
