Reliance Retail is not expecting any disruption with the Goods and Services Tax (GST) is likely to roll out on July 1, a company official said on Thursday. CFO Ashwin Khasgiwala said that, in fact, said the GST would bring better compliance.
"We are not expecting any impact on sales. What we expect is that there is going to be better compliance throughout the country. It will help more towards digital economy as everybody will be giving electronic invoices and data will be flowing more electronically," Khasgiwala told BTVi.
He said retailers do not anticipate any short term glitch in the consumption after the rolling out of GST. "...there was a meeting of retailers' association. Nobody expressed any concern on that (consumption). On the contrary, there will be a better compliance scenario, which will benefit consumers on the long run," he said.
Khasgiwala said if the GST rates have gone down on certain items, there would be adjustment to the maximum retail prices by the manufacturers and that could bring down the prices. "Manufacturers are working towards compensating the modern trade for any losses of inventory, excise, etc on account of transition. I do not think that there will be a great disruption," he added.
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