Hello GST: Retailers to benefit fundamentally, says EY

Harishankar Subramaniam, National Leader, Indirect Tax, EY says that retailers will benefit fundamentally from the GST as VAT, CST and excise duty on locally manufactured goods will be available as credits.

In a new series, Hello GST! CNBC-TV18’s Menaka Doshi discusses how the Goods & Services Tax (GST) Bill will impact the retail sector.

Harishankar Subramaniam, National Leader, Indirect Tax, EY says that retailers will benefit fundamentally from the GST. Currently, retailers have to pay VAT, CST and excise duty on locally manufactured goods, he says adding that these will be available as credits under the GST.

The only question is at what rate do retailers fall on and what would be the impact of that, Subramaniam says. If the GST is implemented without one percent origin tax, then the retailers might not be stuck without any taxes, he says.

However, Subramaniam adds that if the rates at consumption side also increase (goods sold in stores will be taxed higher) could harm retailers indirectly.

Source:http://www.moneycontrol.com/news/economy/hello-gst-retailers-to-benefit-fundamentally-says-ey_5071301.html

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