Retailers seek early implementation of GST
The Dollar Business Bureau
Underscoring the Goods and Services Tax as the game-changer for the Indian retail industry, retailers have urged the government for an early implementation of the new tax framework.
Industry body Retailers Association of India has asked for early implementation of the GST, which will be a game changer for the Indian retail sector which is pegged to grow to $1.3 trillion by 2020, RAI CEO Kumar Rajagopalan said.
"We are waiting for the details of early GST rollout, which, we hear is now in July. This can be a big game changer for retailers across the country," Rajagopalan told PTI.
Striking the same chord, METRO Cash & Carry India CEO & MD Arvind Mediratta said GST would also translate to smooth logistics and supply chain efficiency across Indian states.
"Favourable tax rates under the proposed Goods and Services Tax would benefit the wholesale as well as real estate and infrastructure sectors, which have a direct bearing on the growth of organised retail across the country," Mediratta said.
The retail industry is also seeking adequate initiatives from the government on building positive sentiments and stimulating the growth of the industry.
"This could be by relaxation in individual taxation and removal of cascading effect of taxes. We also look forward to clarification in FDI norms in retail towards making it a level-playing field," Rajagopalan said.
India’s retails sector continues to attract global players, despite several policy obstacles and various operational challenges. Despite these challenges, the foreign retail player views Indian retail industry as young, dynamic and constantly on a growth path, especially against the backdrop of increasing disposable income of the middle class, rapidly developing infrastructure and constantly changing customer choice.
India’s retail industry is projected to grow at a CAGR of 13% to reach $1.3 trillion by 2020 from $600 billion in 2015.