GST can be a Game Changer for Indian Economy

Chennai, India, 2017-Jun-29 — /EPR Retail News/ —  When the clock strikes midnight on June 30th, it not only will herald the customary arrival of a new month, but also a historic moment in the 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.

Bhaskar Venkatraman, CEO and Director of Millennium India

The government headed by Prime Minister Narendra Modi has made elaborate arrangements to take the nation to the new tax reform at the Central Hall of the Parliament, and prominent leaders and personalities are going to witness the midnight gala.

But what is GST for the vast and fast-growing retail sector in India? How the Manufacturers, Distributors, Dealers and Retailers are going to be involved in the uniform tax system? Whether the end customers will bear the brunt or going to enjoy the fruits of the single tax system?

GST stands for Goods and Services Tax. This single tax system will supersede all state and central taxes including Value Added Tax, entry tax, octroi and other mundane taxes, and introduce one single tax right from manufacturers, distributors, dealers to local vendors. GST also avoids cascading taxes which ultimately reflects on the prices of the commodities.

How GST will 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 the GST, people will benefit out of it as some of them will witness decrease in price post GST.”

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

On the 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.”

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

 

Media Contact:

K Ramanathan

Media Coordinator, Millennium India

ram@justransact.com

Cashless Drive will Push India’s Retail Sector to New High

Chennai, India, 2017-Mar-22 — /EPR Retail News/ —  The Government’s ambition to make India a cashless economy was further vindicated by its recent Budget proposals for 2017-18 which have series of measures aiming at pushing cashless transactions even by small retailers across India.

The government has made its intention clear when it first introduced Aadhaar (smart) ID cards as mandatory document to open bank accounts, and later linked all existing account holders and LPG subsidy beneficiaries to prevent malpractices.

But there was still a lot of (unaccounted) cash on circulation and more than 90 per cent of transactions were happening through cash in India with corruption reining high at all levels. The demonetization of higher order currencies announced last November was the last nail in the coffin to rid wide-spread corruption, black money and fake currencies, the three major elements which were weakening the very basic pillars of our economy.

The demonetization has indeed created acute cash crunch forcing people to use plastic money and digital transactions. It was definitely a calculative move by the government to make cash scarce and restricting daily withdrawal limits in banks, so that it can effectively push cashless dealings by individuals and traders.

However, it is grossly inadequate to cater over one billion populace with a meager 1.5 million card swiping POS machines presently offered by banks to retailers.

The retail sector, which is experiencing fast-track growth offering over 10 per cent share to the country’s GDP, presently needs at least five million POS machines to meet the existing demand from retail traders. Looking at the future demand for such devices, we need to scale up this figure to 10 million by 2020.

Though banks were instructed to provide three million POS machines by March 2017, the difficulty to procure make-in-India Mobile POS machines has forced many to look for such devices from countries like China, Taiwan, Japan and European nations. Sensing the delay in getting machines in time, the government has recently relaxed the rules for BIS certification for imported POS machines, which will further reduce the cost and speed up the process of equipping traders with mobile POS devices to do cashless transactions.

The unprecedented demand for mobile POS machines in India has made several local businesses vying to consolidate their position by introducing alternate payment solutions such as mobile wallet or digital wallet using smart phones to Indian retailers. The demand for POS machines has also opened a plethora of opportunities for growth for companies manufacturing and marketing POS machines such as magnetic card readers, POS terminals to do retail billing and other allied devices such as receipt printers, barcode scanners, barcode printers, cash registers, etc.

As Point of Sale remains the lifeline for Indian retail sector, the large scale    usage of POS technology which involves software-driven POS system to carry out host of business operations including desktop billing, mobile billing, cashless transaction using credit or debit cards, inventory management, staff management, customer relation management, multi-store sales tracking, and hosts of other back-end operations crucial for business growth.

Today we have a number of grocery retail stores coming up across the country which offer customers a unique shopping experience with modern POS machines and latest mobile technology, which also help automate their business for better performance and growth. POS has changed the way people shop for their daily needs compared to few years ago.

Retail businesses using mobile card payment option has indeed helped many augment their business. With government announcing a lot of sops for POS sector in its Budget for 2017-18 fiscal, the intention is clear to make the country a cashless economy treading through ‘Point of Sale’. The move will further trigger the already fast-paced retail sector to worth a whopping USD one trillion by 2020 from the present 600 million.

As majority of POS payment devices need to be imported (to meet the target of three million POS machines by March 2017), the government has eased the import norms to make it available freely in the Indian market. The Union budget has proposed tax exemptions in basic customs duty, special additional duty and excise duty for manufacturers of PoS card readers, fingerprint readers, mobile PoS (mPoS) and iris scanners.

The tax exemptions will encourage domestic manufacturers to produce card swipe machines and biometric devices in reduced cost which will strengthen better penetration for digital and Aadhaar-enabled payment systems.

Bhaskar Venkatraman speaks on Union Budget for 2017-18 and its impact on Indian retail sector and POS technology products.

Millennium India is looking at it as a great opportunity to reach out to millions of retailers with latest POS technology products which include mobile card swipe machines, mPOS devices, POS terminals and other allied devices which will help strengthen digital payment environment in the country. As demand is going to be unprecedented in the coming years, apart from managing through offline marketing, we are also pushing POS devices through our e-commerce arm justransact.com, an exclusive online marketplace for POS technology products,” says Bhaskar Venkatraman, CEO and Director of Millennium Soft-Tech (India) Pvt Ltd and JusTransact.com.

The budgetary proposal to impose banking cash transaction tax on withdrawals above Rs 50,000 will further push customers towards digital transactions. This, along with abolishing of merchant discount rates charges on usage of credit/debit card and giving 50 per cent subsidy on biometric devices will bring more small traders towards cashless transaction. This will also encourage them to use POS machines as they no longer lose revenue in each card transaction.

So, there will be huge demand for POS products in India in the coming years from retailers and POS sector is gearing up to meet the demand and become major stake holder for retail sector’s growth metrics.

After ‘digital India’ initiative, the government’s latest push to make the country a cashless economy  through demonetization and digital payments will create windfall for POS manufacturers and dealers in India as the demand for such devices are going to witness astronomical rise in the coming months.

 

For Media Contact: 

K Ramanathan

ram@justransact.com,  ram.justransact@gmail.com

Millennium Retech Ventures India Pvt Ltd,

G-19,2nd  Floor,Block-16, 2nd Main Road,
Ambattur Industrial Estate, Chennai-600 058.

91+ 9384612789

Now invisible barcodes to dodge counterfeits at Point of Sale

Chennai, India, 2016-01-13 — /EPR Retail News/ — Barcodes came into existence half a century ago to speed up the check out process at retail outlets, enhance customer experience and promote businesses. But the booming retail sector, ever increasing demand for faster check-out alternatives and increasing incidents of counterfeit items despite barcoding them, have forced technologists to strive for a fool-proof, reliable and still faster mode of dispatching goods at Point of Sale (POS) counters.

If the new technology unveiled recently by Beaverton-based Digimarc Corp goes viral, the black and white stripes will become extinct in another few years, to be replaced by a new concept called “invisible barcodes”, which are not only reliable and reduce the chances of malpractices, but also help faster checkouts.

The new technology will avoid POS counter staff to look for barcodes printed on items which consumes a second or two to locate the barcodes before running them across the scanner.

The Digimarc barcodes, not visible to human eyes, can be embedded with details of retail items and can be scanned by special barcode scanners.

To try this new path-breaking technology, grocery chain New Seasons in upscale Portland has signed up with Digimarc to use their technology at their retail outlets.  Accordingly, all the packed items on shelves were printed with barcodes that were invisible to human eyes. But, scanners equipped with new technology were able to scan them right away.

Digimarc has been working on digital watermarking for close to two decades with less success. “We have been slow but persistent,” says chief executive Bruce Davis.

In addition to easy checkouts, Digimarc feels that the new technology will help prevent frauds by stopping retailers from pasting one barcode over another and enable more attractive packaging.

Retailers are steadily upgrading their barcode scanners at check-outs from laser-based to optical imaging technology that works like a digital camera, and also compatible to Digimarc’s new technology.

If the visible barcodes got replaced in another few years, New Seasons, a relatively small grocery chain, will make history for being the first to adopt the invisible barcode technology in the world.

So, are we going to witness a slow and steady extinct of barcodes which can be seen on everything from soap packs to water bottles?

Not for a decade or more, feels Bhaskar Venkatraman, founder and director of JusTransact.com, an e-commerce marketplace selling exclusive POS products like barcode scanners, printers and POS peripherals.

Bhaskar Venkatraman, founder and director of JusTransct.com

Bhaskar Venkatraman, founder and director of JusTransact.com

 

“But, over a period of time, the barcode may become obsolete. As far as India is concerned, if the technology succeeds, we can expect the change in another ten years. Till then, 1D/2D barcodes will rule the retail points of sale,” he further added.

Media contacts

K Ramanathan,

JusTransact.com
G-19,2nd Floor, Block-16, 2nd Main Road
Ambattur Industrial Estate,Chennai-600 058
t : 91-44-43551366 | e : ram@justransact.com
m: 91-9384612789 | w: www.justransact.com

India: POS to Scale up Retail Sector Growth in 2016

Chennai, India, 2015-12-31 — /EPR Retail News/ — The fast evolving consumer preferences associated with advancement in technology has made the Indian retail sector one of the most vibrant among the Asian peers with the market indicators forecasting the sector to cross US $ 1 trillion by 2020 from the present $600 billion riding on 13 per cent Compound Annual Growth Rate (CAGR).

While government policies and macro economic conditions act as catalysts, technology plays a pivotal role in revamping the sector towards fast-track development. Thanks to advancement in Point of Sales (POS) technology, sales counters across India are witnessing complete makeover with traditional retail giving way to organized business environment clocking exponential growth. Automating operations by brick-and-mortar businesses with cashless transactions for enhanced customer experience is gaining ground across Indian cities.

Point of Sale hardware products such as barcode scanners, thermal receipt printers, electronic cash registers, barcode printers, Touch POS monitors, mobile/tablet POS and Cloud POS are in great demand with manufacturers expecting good sales in 2016 due to improved market conditions, feel experts.

Bhaskar Venkatraman, Founder and Director of JusTransact.com, an e-commerce portal offering POS technology products to retail and non-retail businesses in India, says: “Indian retail sector has finally taken wings riding on POS technology to make new strides in the coming years. POS is one of the major growth ingredients for retail sector. With government opening up FDI in retail sector and Goods and Service Tax (GST) Bill becoming a reality in 2016, the POS market is expected to witness unprecedented growth by 2020 clocking two million POS installations from the current one million mark.”

However, on global perspective as per a 2014 estimate, of the 250 billion cashless transactions, India accounts for only 0.2 per cent through 1.2 million POS installations. With Reserve Bank of India (RBI) relaxing rules to allow cash withdrawals through POS machines across India, the demand for POS machines are going to go up further in the coming year, opines Bhaskar.

According to RBI Deputy Governor R Gandhi, “If India needs to reach the average levels of BRIC nations, we need to have another 20 million POS terminals from the present 1.2 million machines connecting rural and urban areas. With India having more than one billion mobile connections, the retail payments in the next five years would be increasingly driven through mobile payments, the top RBI official lamented.

Recently, several state governments including Rajasthan, Andhra Pradesh, Orissa and Madhya Pradesh have started introducing POS machines at their fair price shops to reduce pilferage of food items meant for public distribution. These hand-held POS devices with biometric fingerprint scanner will soon find place in thousands of ration shops across the country.

Expressing optimistic about POS market in India, D Bhaskaramoorthy, Vice-President – Sales, Posiflex Technology (India) Pvt. Ltd, one of the leading POS hardware brands in India, says, “With FDI opening up for Retail sector and GST implementation looking brighter in 2016, we can foresee a potential growth for retail segment vis-à-vis POS and peripherals in India as more and more stores are expected to automate their business to enhance sales and back-end operations.”

Implementation of GST will enable easier movement of goods across the nation, thereby benefiting retail operations pan-India, he says.

Media contacts

K Ramanathan,

JusTransact.com
G-19,2nd Floor, Block-16, 2nd Main Road
Ambattur Industrial Estate,Chennai-600 058
t : 91-44-43551366 | e : ram@justransact.com
m: 91-9384612789 | w: www.justransact.com

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Bhaskar Venkatraman, Founder and Director of JusTransact.com

Bhaskar Venkatraman, Founder and Director of JusTransact.com

Indian POS

Indian POS