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

ARA applauds the Parliament for implementing fairer tax system for Australian retailers

Melbourne, Australia, 2017-Jun-21 — /EPR Retail News/ — The Australian Retailers Association (ARA) congratulate the Parliament for passing the low-value GST for offshore tangible goods under $1000 as this legislation will improve tax fairness for Australian retailers.

Russell Zimmerman, Executive Director of the ARA said they have been working with the Federal and State Governments since 2008 to reduce the Low Value Threshold (LVT) and provide a level playing field for Australian retailers.

“Today the Australian retail industry received a big win, as this much-needed GST will significantly assist our local retailers when trading against our international counterparts,” Mr Zimmerman said.

“This new legislation will create a fairer tax system for Australian retailers who are currently operating in a tough trading environment.”

The ARA congratulate the Parliament for passing this Bill but are extremely disappointed that the legislation won’t be implemented until 1 July 2018.

“We are disappointed there will be a 12 month delay before overseas retailers start collecting this tax, but we look forward to Australian retailers finally being given a fair chance,” Mr Zimmerman said.

“This legislation will mean our local retailers will be able to trade on the same level playing field as our international competitors.”

The ARA will continue to work with the Government and Productivity Commission to seek the most efficient system in collecting this GST.

“We will be talking to our members to ensure this legislation is implemented correctly,” Mr Zimmerman said.

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For interview opportunities with ARA Executive Director Russell Zimmermancall the ARA Media Line on 0439 612 556, or emailmedia@retail.org.au

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

SOURCE: Australian Retailers Association

Goods and Service Tax (GST) can Alter Economic Prospects of India: Industry Experts

Chennai, India, 2016-Aug-12 — /EPR Retail News/ —  The long awaited Goods and Service TaGST1x (GST) has passed the last mile hurdle with country’s upper house of Parliament clearing the Bill on Wednesday, after much deliberations and amendments to appease the strong opposition. How does this tax reform going to benefit the retail sector which has been making a strident growth and become one of the fastest growing sectors? JusTransact.com asked a few industry veterans about the pros and cons of GST implementation. Excerpts…

Baskaramoorthy.jpgBaskaramoorthy, VP Sales, Posiflex India: “End users might end up paying additional taxes if percentage of taxes under GST regime is increased from the current VAT level. However, it will help traders and manufacturers to leverage business across India with effective supply chain and distribution of products.  The biggest relief is that GST will do away with the current C-form and interstate forms which are presently collected at the end of each year.”

BhaskarBhaskar Venkatraman, Director, Millennium India, a veteran in Point of Sale technology in India: “GST in the present format is going to benefit the economy, businesses and consumers alike. As it is going to replace 17 indirect taxes, tax procedures will be more simple and transparent. Apart from pushing up tax revenues, the corruption at check posts and slow-movement of trucks will become the things of the past. Since calculation of tax is going to be uniform across all states, finance people will heave a sigh of relief as they no longer muddle with complex forms while dealing with inter-state goods movements.”

AntonC Anton Jabadurai, Country Head, Bixolon India: “GST will facilitate the possibility of automation in tax calculation and goods processing, which will increase the requirement of POS hardware across India. Apart from smoothening the supply chain management, GST implementation will create a transparent tax regime across all states which will benefit both traders and end-customers. In the long run, the frequent price rise due to high transportation and warehousing cost will come down drastically.”

Anuj PuriAnuj Puri – Chairman & Country Head, JLL India: “The Goods and Services Tax (GST) is the most essential taxation reform which is going to alter India’s economic prospects. Single taxation, covering all goods and services, is a welcome change. GST will eliminate cascading effect of taxes, and will boost tax collection while reducing overall taxation levels. However, post GST, the results will be evident only after two-three years from now.”

Slated to increase the country’s GDP by one point, the GST era, which is going to unfurl from April 2017, will surely be the new chapter in India’s tax history post Independence. How far it will benefit the country and common man, one has to wait and see.

Media Contact:

K Ramanathan,

India

+91 09384612789

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