🇮🇳India

लागत अधिभार

3 verified sources

Definition

Vendor contracts for logistics, staffing in paper wholesale trigger 18% GST RCM. Poor contract management causes late payments, accruing 18% interest.

Key Findings

  • Financial Impact: 18% interest p.a. on delayed RCM (₹5,000-20,000/month for typical logistics contracts)
  • Frequency: Per vendor payment cycle
  • Root Cause: Manual identification of RCM-applicable vendors in PO process

Why This Matters

The Pitch: Wholesale Paper firms in India incur ₹2-5 लाख/year extra on RCM interest. Automation of PO tax classification prevents this overrun.

Affected Stakeholders

Procurement Manager, Finance Controller

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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