The consumer and retail sector should get easier GST processes and a national retail policy out of the budget this year, aimed at accelerating the segment's recovery from the pandemic, said an executive from Grant Thornton Bharat.
“The consumer and retail sector, now steadily getting back on the growth trajectory, is looking at more effective ways to ease the compliance mechanism under the GST regime, as well as an efficient refund process to prevent credit blockage,” Naveen Malpani, partner and FMCG leader at Grant Thornton Bharat, said.
“The sector is also looking forward to the formulation and implementation of a National Retail Policy. Looking at the success of the PLI (production-linked incentive) schemes, the government should definitely consider rolling it out to new sectors like toy manufacturing, footwear as well as personal care and cosmetics,” Malpani added.
The expectations come in the wake of the last year’s budget making input tax eligibility conditions more stringent with the supplier required to furnish details of invoice in outward supplies, among other things.
Also, the budget had launched a PLI plan to create "global manufacturing champions" across 13 sectors by committing nearly Rs 1.97 lakh crore over five years to the scheme, boosting the consumer and retail sector.
It had also proposed a Mega Investment Textiles Parks (MITRA) scheme to create "world-class infrastructure for global champions" in the textile sector leading to the creation of seven textile parks over three years, again lifting the sector.
In another push to the consumption story, that budget had increased capital expenditure to Rs 5.54 lakh crore from Rs 4.12 lakh crore in the last budget.
Also boosting rural and urban consumption was the increase in health outlay to Rs 2.23 lakh crore from Rs 0.94 lakh crore in the last budget.
