This could change with the advent of GST, which is expected to be more beneficial for small-city players, looking beyond the short-term implementation challenges. While large cities will continue to have pricing power, their price advantage will narrow. The enhanced systemic efficiency under a simplified indirect tax structure will reduce input prices and logistics costs, making it faster and cheaper for raw materials to reach smaller towns and finished goods to reach larger markets.
via CRISIL SME Tracker: GST to make MSMEs in small cities more competitive | Business Standard News