Budget 2018 Podcast: What are the expectations of retail sector?

Welcome to the Moneycontrol Budget 2018 special. This time around, we’re taking a quick look at what the retail industry seeks from Finance Minister Arun Jaitley on February 1^st.

Retailers across India have requested that industry status be granted to sector to allow easier access to finance and to attract more investments. The retail industry is also seeking a relaxed FDI regime for multi-brand retail trade or MBRT.

They also hope that the budget would widen the tax slabs for individuals, which would then lead to increased disposable income.

Talking about a pre-budget wish list, the Retailers Association of India said "Industry Status for Retail Sector would provide the sector with support in accessing the financial system and hence allow for more investment in the sector and also allow the critical sector to be eligible for all support and incentives as applicable to other industries."

Another demand from the retail sector is an affordable and accessible billing system, in terms of both hardware as well as software, for smaller retailers. The RAI also pointed out the need to make digital payments more attractive to retailers - by making them less expensive than card payments or incentivising acceptance.

Mall owners too have a wish list. They are keen on a single window clearance for mall and shopping complex owners. Mall owners claim that fully functioning malls are a combination of real estate, retail and hospitality. As of now, they have to visit multiple government departments for approvals and licenses. A single window clearance would go a long way in making things more business friendly.

A significant demand that retailers have made is regarding GST refunds.  They have asked thatyGST Refunds be provided to international tourists, promoting tourism and retail. GST invoices issued to these consumers could be further simplified by eliminating the mention of HSN codes on them, removing the need for manual signature and multiple copies.

Those are some very specific and clear expectations that the retail sector has from Budget 2018. Stay tuned for more on Budget 2018 Expectations on Business One.