Impact of GST on Retail Sale Traders

What is the Impact of GST on Retail Sale Traders

 

The details about Impact of GST on Retail Sale Traders are explained here. 

Impact of GST on Retail Sale Traders

Under the current indirect tax regime, Retailers and retailers normally escape the tax liability as there is no mechanism by which their actual purchase and sale can be traced. Many of their transactions are done in black, meaning no invoice is issued to the buyer, and eventually no entry is posted in the books for such sales.

These taxpayers usually leverage the tax liability evaded and undercut the market to gain in volume. Their margin of profit remains as low as 1 percent. Since under the GST regime, every invoice pertaining to taxable supply has to be uploaded on GSTN’s common portal and has to be accepted by the buyer, Retailers and retailers will now be unable to escape their tax liability. The only possibility for tax evasion would arise if the entire supply chain is outside the tax network and did not file a return under GST law, which is very unlikely.

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