The passing of the much awaited GST brought a sign of relief among the retail industry. While GST is a big win for retail industry, a lot will depend on the execution of the new bill.
With the passage of the Constitutional Amendment Bill for GST (Goods and Services Tax) by both Houses of the Parliament and more than half of the desired 50 per cent States already ratifying the Bill, it appears GST in India is now an eventuality. Industry and trade have started to gear up for the largest tax reform of India since independence with discussion on GST find prime time with senior management and the Board alike.
GST is proposed to subsume various indirect taxes including excise duty, service tax, VAT, sales tax, luxury taxes, entry taxes, state entertainment taxes, countervailing duty and additional customs duty.
Given that the said levy would apply across the supply chain from procurement to the last mile delivery to customer, GST would have an impact on all operations of business. This would translate into impact on prices, business processes, IT systems, supply chain and profitability in all segments of the economy.
The retail sector is looking forward to the implementation of GST, as there is a potential ‘Pot of Gold’ which could be available to this segment. Key impact areas have been discussed herein below.
Tax savings on procurements
At present, purchase of goods and procurement of services attract multiple indirect taxes. One of the major expenses incurred by retail chain outlets is rent of premises and malls. Under the current indirect tax regime, service tax paid on rentals and various other services is not available as a credit to the retail chain outlets.
Besides, there are other taxes which are either embedded in the cost of goods given the non creditable nature of the said levies or leakages in the current tax regime which contribute to increase in operating costs, which gets passed on the consumers.
Bu hikaye Retailer dergisinin October 2016 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Retailer dergisinin October 2016 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
What Drives Gen Z's $860 Billion Spending Power and Why It Matters
With a staggering 377 million members, Gen Z is poised to redefine India's consumer landscape. Their unique preferences and immense purchasing power are set to drive a remarkable $2 trillion economy by 2035.
The AI-Powered Future
In the rapidly evolving world of commerce, where digital transformation has become the cornerstone of success, the role of artificial intelligence (AI) stands out as a game-changer.
D2C's King: Vivek Biyani
How Biyani is taking experiential commerce to newer levels and giving digital first brands prime spot on retail shelves with Broadway.
Chef Adwait Anantwar's Flavor Magic at INJA
In an exclusive interaction, Chef Adwait Anantwar, Chef Partner at the popular restaurant INJA by Atelier House Hospitality, discusses how he brings uniqueness and creativity to his culinary creations.
QC is the Secret to myTrident's 400% Growth!
With an ambitious goal to double its revenue to over Rs 1,000 crores in the next three years, the brand is strategically focusing on increasing retail presence and penetrating new markets, especially in the southern and eastern regions.
How GIVA's Fine Jewelry Empire is Growing at 100% YoY
GIVA eyes 300 stores in 2 years and Rs 1500 cr revenue in 5 years!
SPEED MEETS STYLE
With the rise of platforms like Blinkit and Zepto, fashion brands are seeing quick commerce not just as a delivery mechanism, but as a critical part of their retail strategies
Indian Origin D2C Brands Make Mark in Global Markets
For many Indian brands, the motivation to expand internationally stems from a desire to share India's unique offerings with the world.
TOP MARKETING TRENDS 2024
In today's fast-paced world, the right marketing approach isn't just crucial for staying afloat-it's the driving force behind brand reinvention and expansion. Ready to discover the secret sauce of three giant retail brands in India? Let's dive into the strategies that are making them the trendsetters of the year.
How India's Pet Care Industry is Raising the Woof!
India's pet care industry is on a rapid ascent, projected to reach $350 billion by 2027, as rising pet ownership and pet \"humanization\" drive demand for premium products, specialized services, and innovative, pet-focused retail experiences.