INTRODUCTION

 The scenario of retail business after implementation of GST is explained. It is

an indirect tax levied in India on the sale of goods and services.
 Effect from July 1, 2017 it is one of the biggest tax reforms since independence.
 Government has proposed four tax slabs at 5%, 12%, 18% & 28 % for a different
type of items and services.
 Impact of GST on retail sector is going to be positive bring down total indirect
taxes, increase supply chain efficiency and facilitate seamless input tax credit.
 Due to implementation of GST, state boundaries are irrelevant from taxation
and documentation point of view. Vanishing state boundaries will reduce the
complexity for retailers and increase the distribution reach as well as efficiency.
 The retailers would be able to carry out the business with more ease
 Do not have to waste their time in paying various taxes and waiting to fulfill all
other policy requirements of the previous taxation system.
 Retail sector are attracting a lot of start-ups as they would have to register
their business only once and also claim the benefits of taxation for start-ups
under the new GST.
 OVERVIEW OF GST
“One Nation One Tax”:
The GST
( Goods & Services Tax) is based
on the draft model of the
Constitution (One Hundred and
Twenty-Second Amendment)
Bill, 2014 proposed by Union
Finance Minister Mr. Arun
Jaitley. The Bill proposes to
confer power on both the Center
and the State to impose a
uniform GST on the transaction
of any Goods and Services in the
country. The GST is one of the
biggest tax reforms in the
country and addresses the
following issues prevalent with
current Tax regime:
 To impose uniform taxation policy
and procedures throughout the
country irrespective of the goods/
services category.
 To curb the indirect taxation on
the sale or purchase of
goods/services. This indirect
taxation has crept into the system
due to the separate taxation
policies by the Center and States.
 To reduce unhealthy competition
among the States.
 All these and then to increase the
band width of the current tax base
and raise compliance.
 AIM OF GST
The ultimate aim of GST is to eliminate all such barriers within a
country on free flow of goods and services along with seamless
availability of input tax credit.
In India we have dual GST model where on all intrastate supply
of goods and services CGST and SGST shall be charged whereas
on interstate supply IGST is attracted.
At this point of time it becomes important to understand that
the concept of manufacturer, sale, and provision of services will
go away and we will have a new taxable event called supply.
GST will be attracted on supply of all goods and services except
alcoholic liquor for human consumption whether for a
consideration or even without consideration in some cases.
 Registration of Business
[Under GST]
 already registered - migrate to GST
 unregistered entities- get registered under GST as per
the given provisions.
 Having a PAN is mandatory for GST registration.
 Non-residents registration by other documents as
notified by the appropriate authority.
 Separate GST registration shall be required for each
state of operation and for each business vertical in a
state.
Benefits of GST on Retail sector
 Reduced taxes
 Enhanced supply chain efficiency
 Seamless Input Tax Credit
 Stretching of retail markets
 Tax on promotional items and gift
 Easy start-ups
 NEW LAWS PERTAINING TO
INVOICES
 The sector would see new laws pertaining to invoices creation,
which are as follows:
 Invoice creation is mandatory for sale value above Rs. 200.
However, an invoice must be essentially provided, if the
customer insists for anything less than Rs. 200 too.
 Invoice above Rs. 50,000 should mandatorily have the customer
address.
 Individual invoice details are not required for return filing. A
consolidated filing will suffice.
 Sale through e-commerce operator has to be reported per
operator.
 Benefits of GST on the Indian Retail Sector would have ripple
effects on the economy and it would overall strengthen and fuel
the growth of the retail sector exponentially.
4 KEY TASKS
NEED TO DO
Supplier and customer contracts  Review of business processes and supply
and business terms to be reviewed for
necessary amendments to enable
chains to identify the incidence of GST and
charging of GST once implemented. requirement for additional working capital for
With the recent approval of transactions not being taxed at present.
central GST laws and rules by the
lower house and the GST Council  Discussions with suppliers and customers and
respectively, implementation of GST necessary amendments to contracts and
in India from 1 July 2017 appears
apparent.
business term
It is expected, from evidence from  Accounting and reporting requirements
other countries who introduced GST,
that certain positions would emerge
 Technology changes to support GST
from the interpretations to be compliance once implemented
adopted by tax authorities and the
rules and guides introduced by the
government during the transition.
GST claims to change the way of
conducting business, which is
expected to be easier and simpler to
administer.
GST vs. VAT, others
what makes GST better
than VAT
 To begin with, VAT is state-specific with a
limit of Rs 10 lakh in turnovers.
 Adding to its complexities, VAT requires
declaration forms like C, H, etc., while GST
needs no declaration forms.
 Similarly, in VAT one can claim for returns
within 45-60 days from the end of a quarter.
 Furthermore, VAT has no specific mode of
payment, while in GST if payment exceeds
Rs 10, 000, one needs to make it through
the electronic mode. Last but not the least,
VAT has no rating system for a business,
whereas, GST rating is based on timely
filing of returns and payments.
GST
 whereas, GST unifies the market with
a registration limit of Rs 20 lakh.
Moreover, VAT has TIN-based
registration, while GST registration is
PAN-based. Likewise, while GST
comes with a seamless flow of input
tax credit, CST on inter-state
transactions comes with no input tax
credit.
 In GST, the returns start coming in
from the 20th of the succeeding
month in a phased manner.


Hence, on a concluding note we would like to say that, just the way we are
certain about the benefits of GST in the retail segment, we are confident
that it will bring relief to the consumers as well by eliminating a plethora
of taxes such as CST, Octroi and excise, among others.
Complexities of
implementation
 Increase in taxes
 Since major products rate has been increased to 12% or 18%
. For a trader it will be a tax burden.
 Technology understanding
 Kirana user would need to stay updated with technology
since the way in which accounts are required to be
maintained under GST, they can only be maintained if a
proper technology is used.
 So in my opinion it will be a little difficult for local retail
shops to adjust with GST in beginning.

CONCLUSION
 Under the earlier arrangement, all items had to be mentioned separately along with their prices and
taxes. Retailers won’t have to issue long invoices detailing prices and taxes for each item under the
goods and services tax (GST) regime, further easing the billing and compliance burden on them.
 They will also not have to issue separate invoices for exempted items taxed at the 0% rate and can
club all purchases in one bill.
 The two changes will make invoicing and filing easier for retailers.
 They can issue invoices clubbing all goods taxed at one rate and mention just the total tax, facilitating
smaller and less cumbersome invoices. Under the earlier arrangement, all items had to be mentioned
separately along with their prices and taxes.
 Retailers had argued that the end-customer is concerned with the net sale price and didn’t need a
detailed tax breakup, but this was rejected by the committee. It said buyers have a right to know the
tax being levied on all goods and services purchased by them.
 A supplier need not provide the rate of tax against each item in the invoice and can instead show the
cumulative value of all items liable to tax at a particular rate and the total levied on them. This will
allow for clubbing of items and simpler invoices.

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