Ahead of the rollout of the Goods and Services Tax (GST) rate cuts on hundreds of items from food to consumer durables, the Department for Promotion of Industry and Internal Trade (DPIIT) has written to the Retailers Association of India (RAI) to ensure physical retail chains prominently display and advertise ‘discount due to GST’ through their networks.
Display may include posters, flyers and ads (Print, TV & Online) through their own retail networks, it said.
What does the DPIIT letter say?
“Reflect the GST reduction in the receipt/bill — as GST discount (major focus to be given on high impact products),” according to a DPIIT letter written to RAI.
Monitor sales figures hit during this festive season and may be highlighted through various channels, it said.
“I shall therefore be grateful if you could have the members of the Retailer’s Association of India (RAI) and other entities affiliated to the association take up the above activities earnestly,” said Sanjiv, DPIIT joint secretary in the letter.
New GST rates to boost sales in the festive season
On September 3, the GST Council approved a major restructuring of the indirect tax by pruning the number of main slabs to two — 5% and 18% — and introducing a special 40% rate for sin goods, a move that will lower the tax incidence on a wide section of businesses, and benefit the end-consumers. The 12% and 28% rates have been abolished.
The new tax rates will take effect from September 22, well in time to boost sales in the festive season.
Recently, the Central Board of Indirect Taxes & Customs (CBIC) and other departments have asked prominent industry bodies including FICCI, CII, Assocham and PHDCCI to sensitise their members on passing the GST cut benefits to consumers and publicise the new rates post tax cuts to create awareness among the masses.