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GST on any transaction - literally any transaction - is not avoidable unless the entire transaction within its ambit is out of the GST system - from manufacturer to retailer. Therefore, it is clear that with GST, everyone needs to be accountable, and no one can evade tax or go away without remaining entirely transparent. Retail business in India is one of the important pillars of the democratic country and accounts for nearly 10% of the country's GDP.
The entire retail sector is projected to be more than 600 billion US Dollars and it is one of the top five retail markets in the country. So, it is obvious to project that the GST will have a heavy impact on the sector. While some analysts are thinking otherwise when it comes to the long terms benefits of GST, there are analysts who always think in positive. Read on top five things you need to know, if you are interested to learn its impact on retail business.
Reduced, simplified, one than many tax
Comes GAT and you no longer need to pay multiple taxes in standalone slots. Forget CAT, VAT, Octroi, service tax and etc. Under the ambit of GAT, all you need to pay and understand is GST. This reduces the complexity arising out of paying many taxes.
Uncomplicated and seamless input tax credit
GST, as it is evident, will reduce the burden of tax on the retail sector. It is because the taxing duties and liabilities will be streamlined across channels - from manufacturing point to dealer to retailer and customer. The flow of tax will be simple and flaw-less thereby encouraging the entire taxing system to become entirely uncomplicated.
Increased supply chain efficiency
The transporters can carry out more goods to new state, retailers can carry out business literally anywhere - across states within the country - through one single registration, so they need not to maintain standalone warehouses across states. The reduced boundaries and increased inflow of goods across states will encourage retail segments to improve their operations.
No promotional gifts - since it might attract taxes
Earlier companies and retailers used to gift promotional offers; which used to remain untaxed. But now, the gifts will come under the ambit of the taxes. So, retails will need to pay taxes on the gifts and promotional offers therefore they might need to rethink their promotional campaigns and offers.
One single registration and carry business anywhere
As we noted earlier, one single registration is needed to carry out retail anywhere in India. Therefore, retailers can easily carry out their businesses. This will contribute to the growth of the business.
Other than these impact, the GST will hopefully bring in a lot of strategic changes and hopefully streamline and uncomplicate the entire taxing system for the betterment of the entire country and make everyone tax accountable thereby encouraging the system of honesty.
- It will improve the scope of better strategies
- Reduce complications
- Benefit startups
So, it can be concluded that GST will hopefully bring in a lot of strategic changes in the retail sector and it will improve the industry. However, we need to wait and watch till the entire taxing system is fully introduced and channelized.
Should you want to learn more about GST and how technology can help you ease with GST filling, you might wish to check KwikBilling website. Developed by one of India's renowned website, internet marketing and app development company, Om Software; KwikBilling uncomplicated the entire process of filling GST with the help of a few clicks!
Category : Business
URL : https://www.kwikbilling.com/blog/gst-on-retail-business-top-5-things-you-must-know
Date Added : 9-8-2017