THE INDIAN RETAIL SECTOR
One of the strongest pillar of Indian economy that accounts
for 10% of the total GDP is the “Retail Sector” and provides total employment of
8% . This sector values US$ 641 billion (2016 ) and experts say it to reach a
worth of US$ 1.6 trillion (by 2026) . The retail sector has reced FDI of US$
1.04 billon according to DIPP ( department of industrial policies and
promotion). The Indian government has allowed 100% FDI in online retail of
goods and services. It can be classified into two categories :
1) Online retail
The online retail has total worth of US$ 30 billion (2016)
and is expected to grow at a rate of 43 % by 2020 and reach a th of US$ 120
billion. The various benefits offered by online retail over physical retail are
-flexible shopping hours.
-very nominal setup cost.
-more reach than traditional retail stores.
2)The traditional retail
It is further divided into two categories :
a) Organized sector- It accounts for only 9% of retail industry and
is valued at US$ 60 billion.
b) Unorganized sector- It accounts for 91% of retail
Goods and service tax has replaced many kinds of indirect
taxes in India like VAT, entertainment tax , service tax etc. It is destination
based ( premises) consumption tax. France was the first state to implement in
1954. It has various benefits over over the existing tax structure which are :
-It removed the cascadind effect.
-Increased transparency in the tax structure.
-Presence of formity.
-All goods and services are properly classified.
Types of GST:
1) CGST- It will be raised on all intra state transaction of
goods and services and will be collected by the central government.
2) SGST- It will be also raised on intra state transactions
of goods and services and will be collected bu the state government.
3) IGST- It will be raised on inter state transaction of
goods and services and will be collected by central government.