The fragility of supply chains under proposed GST

Goods and services tax (GST) implementation is going to be a watershed in the re-imagining of India’s supply chains. GST will make supply chains more efficient, but there is a serious drawback in the current draft—GST makes supply chains vulnerable to upstream compliance-related disruption. Consider a three-stage supply chain with an upstream Firm A selling goods or services to Firm B which then s…