With GST to be implemented from July 1, 2017, it has prompted different parts of retail industry to react differently.
Deepansh Bhargava, AVP – Marketing Operations, Central stores of Future Group told Retail4growth, “We have already rolled out pre-GST sale in all Central stores with plethora of brands. As the retailers and consumers both are living in anticipation, we thought that it would be a good idea to put our existing stock on sale a little advance on time.” On the conundrums of unorganized retail sector, CAIT (Confederation of All India Traders) National President B.C.Bhartia and Secretary General Praveen Khandelwal said that as per statements of the GST Council decided that the tax slab of 28% will attract only those items which are currently taxed at 30-31% ( inclusive of VAT & Excise Duty) but with a rider. And the rider is that in this category there are several items which are now being used increasingly by a very large number of people, particularly the lower middle class. So for them 28 or 30 or 31% rate will be higher, and so these items will be shifted to 18%. However, about 19% of the goods fall under 28% category defeating the object of the Council.