 "GST, Tax")
Laminated packaging tubes manufacturer Essel Propack Ltd (EPL) estimates 7-8% contraction in the demand of its products in the run up quarter to the GST (Goods and Services Tax) implementation due to cleaning up of pipeline inventory following variations in the effective tax levies.
Although the fineprint of the effective taxes is yet to be finalised which the GST Committee might do in May, yet the levies are expected to vary from the existing ones including excise and local taxes currently effective on manufacturing sector.
The domestic operations contribute around 40% of EPL’s annual turnover of Rs 2,185 crore (FY15-17) and the impact of the GST rollout is estimated to be seen on this segment of company’s business.
