The migration to GST has been smooth as we had begun the transition process long before. Right from the GST preparatory stage, when commodities were classified on the basis of the HSN Code, we had been coordinating with our suppliers in other parts of the country. We ensured that our selling codes matched with that of our suppliers. Confusion arises where there is a mismatch in the interpretation of HSN codes. Things can go out of hand when we place one particular commodity in one code, and our suppliers stamp the very same commodity with another Code. It has also helped that most of our suppliers are in the organised sector.
We have no issues with our existing stock. We were clear right from the beginning that no products will be sold above the MRP. There could be revenue loss. In many cases, take for instance electronic products, the tax has gone up; from 14.5 percent to 28 percent. We will have to sell it at the existing rates though we will be asked to pay up the GST rates. The hope is that we might get the Excise duty input contained in the existing stock already paid by the suppliers through the process of CTD (Credit Transfer Documents ) as per the provisions contained in the Act.
However, there are wrinkles that need to be ironed out. Some of our suppliers have still not migrated to the GST system. Most of them have applied for GST registration but server issues seem to be causing the delay. So stocks from such dealers will take some time to arrive. But once the GST systems are in place, we feel it would do a world of good for business and it will be the biggest game changer for the Indian Economy. Earlier for instance our stocks were delayed at the check post for at least a day. From now on, our supplies will reach us faster. For retail business, time is of the essence.
(The writer is director, Lulu Int’l Shopping Mall)
