Post GST the tax rate on gold stood at 12.2% which comprised of 10% customs duty, 1% excise duty and 1.2% VAT. The effect of GST has reduced the cost gap between organized and unorganized players of the industry.
Capillary Technologies internal study on the impact of GST on EOSS revealeda projected sales surge of 2-3% for most non-premium brands including hypermarkets where 80-90% sales come from products worth less than Rs. 1,000
The FMCG sector of India comprises more than 50 percent of the food and beverage industry and another 30 percent from personal and household care, thereby spanning the entire rural and urban parts of the country.
As per CRISIL revenue growth of the organized B&M retail sector is expected to improve to 14-16% annually in the next two fiscals compared with 13% compounded annual growth rate seen between fiscals 2015 and 2017.