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Retail businesses to become more organized post GST
When the clock strikes midnight on June 30, not only will it herald the customary arrival of a new month, but also a historic moment of post-Independence era as the country will be joining other major powers in the world in adopting Goods and Service Tax (GST), which aims to bring in a uniform tax regime for various goods and services traded across the vast nation.

The government headed by Prime Minster Narendra Modi has made elaborate arrangements to take the nation towards the new tax reform at the Central Hall of the Parliament, which shall be witnessed by prominent leaders and personalities.

But what does GST mean for the vast and fast-growing retail sector of India? How manufacturers, distributors, dealers and retailers are going to be involved in this uniform tax system? Will the end customers bear the brunt or enjoy the fruits of this single tax system?

GST stands for Goods and Services Tax. This single tax system will replace all indirect state and Central taxes including Value Added Tax, entry tax, octroi etc, introducing one single tax for one to all including manufacturers, distributors, dealers, service providers and local vendors. GST will also avoid cascading taxes which ultimately reflect on the prices of the commodities.

How will GST impact the Point of Sale (POS) sector, which has been the bellwether of the BJP government to make the country a cashless economy?

POS is one of the major pillars of the retail sector which supplies hardware components like credit/debit card swiping machines, inventory management tools and POS terminals such as cash registers, barcode scanners, barcode printers, cash drawers to name a few.

Speaking about the impact on the retail sector, Bhaskar Venkatraman, Director and CEO of Millennium India, a group involved in marketing some of the world's top POS hardware machines to Indian retailers for the last two decades said, "GST will make the retail sector more organized as more than 85 per cent of the businesses in India are unorganized and need to be regularized. With GST, there will be a single transparent tax structure throughout the supply chain and clear mechanism to calculate the taxes at various levels. Since several daily use items are exempted from the purview of GST, people will benefit out of it as some of them will witness decrease in price post GST."

For retail sector, Bhaskar Venkatraman, who had also introduced India's first and only e-commerce shop (justransact.com) to make top branded POS technology products available online to retailers, said that it will be a win-win situation for retail businesses as they are now out of the complex tax laws and filing processes.

On GST's impact on POS sector, Bhaskar said, "The net impact on the pricing (of POS products) would be very minimal and in fact would boost the consumption. While in the short-term, GST could be perceived as a tough stance for growth, in the longer run, the retail sector would benefit immensely only to gain because of price harmonization and smooth flow of material across the country."

So then, what does GST mean for end customers? The burden or benefit would finally be on the end consumers but an overall win-win situation would prevail, concludes Bhaskar.

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of merinews.com. In case you have a opposing view, please click here to share the same in the comments section.
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