You are here: Home » Budget » Run-up » Industry
Business Standard

BUDGET WISHLIST: Retail firms want a definite timeline for GST rollout

In the run-up to Union Budget for 2015-16, Business Standard looks at major developments and industry expectations in key sectors of the economy

BS Reporter 

RETAIL SECTOR

KEY DEVELOPMENTS

  • Rise of e-tail: Online marketplaces and e-commerce are disrupting business of physical retail stores
  • Investments: Several e-commerce companies have received big investments lately
  • Organic growth: Retailers are expanding in Tier-II and -III cities. Consumer demand in smaller towns and cities, reasonably priced real estate and a focus on local manufacturing will aid consolidation and growth of organised retailing
  • Acquisitions: The year 2014-15 has seen a pick-up in acquisitions, both in retail and consumer space, and an increased interest in the food sector
  • Variety: Both restaurants and food-based consumer firms have experimented with a variety of global and national cuisines and tastes

KEY ISSUES

Read our full coverage on Union Budget
  • GST implementation: This would go a long way in eliminating tax inefficiencies across sectors and boost manufacturing. The FMCG sector — and now e-commerce — will benefit by rationalisation of warehousing capacities in various regions. Logistics companies also stand to gain
  • Private labels: Development of these by large retailers is emerging as a threat to FMCG firms and original equipment manufacturers
  • Supply chain: Inefficiencies continue to be a cause for concern, especially for big-format retailers. Cold chain infra and warehousing capabilities need to be increased
  • Status: No status for the retail sector is a drag

RETAIL BOOM | Create infographics


CEO BYTE

Govind Shrikhande, Customer care associate & managing director, Shoppers Stop

“We look forward to this year’s and expect the government to put forth a definitive timeline for a nationwide rollout of GST. The tax regime will help us set off service tax on rent, giving a significant boost to the Overall, we expect concrete measures to further improve investment climate & consumer sentiment and bolster consumption”



EXPERT VIEW

Business Standard had invited readers’ queries on the for 2015-16. A PwC expert answers key questions

Rachna Nath, leader (retail & consumer practice), PwC India

What could be the threshold limit for GST? — Raghuveer Kamath

The finance ministry had proposed a threshold limit of Rs 25 lakh for GST. Since states have a significant number of VAT dealers with turnovers between Rs 10 lakh and Rs 25 lakh, the empowered committee of state finance ministers in August last year recommended a threshold of Rs 10 lakh for general-category states and a lower one of Rs 5 lakh for special-category and northeastern states.

According to the finance ministry, the Rs 10 lakh threshold limit for GST is too low to create a business-friendly tax administration.

What are the expectations on retail play in the times to come?

Reinventing the physical-store format and collaborations in the online and offline space will be the order of the day. E-commerce and traditional retail firms joining forces to complement each other will result in a pan-Indian coverage of consumers and boost supply chain and distribution infra. The focus will, therefore, be on growth and improving the supply chain in India.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, February 25 2015. 00:10 IST