RAI has submitted a representation to the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India seeking clarification on whether third-party invoicing was permitted under South Asian Free Trade Area (SAFTA). And if third-party invoicing is permitted, whether the FOB value of goods invoiced from the third party, including the margin is eligible for the exemption. In its representation, RAI has highlighted the wide acceptance of the practice of third-party invoicing worldwide.
RAI submits recommendations on Legal Metrology proposal
The Department of Legal Metrology, Ministry of Consumer Affairs has come up with a proposal for decriminalizing the Legal Metrology Act, 2009. The salient features of the Act are:
Every offense is now compoundable
Director nomination has now been removed
Click here to view the proposal. RAI has submitted its proposal on the same to the Department.
(Click here to view RAI's comments )
A delegation of members of Retailers Association of India (RAI) met Shri Praveen Pardeshi, Hon Municipal Commissioner, Brihanmumbai Municipal Corporation (BMC) and had a fruitful discussion on 24 hours working in Mumbai. The delegation consisted of Retailers, Mall and Restaurant Operators.
The key points discussed during the meeting were:
24 X 7 provision is an enabling provision and it is currently available only for establishments operating in Malls and/or Mills.
For Standalone Shops & Restaurants, Retailers Association of India (RAI) will work with the National Restaurants Association of India (NRAI) and identify specific areas where Retailers & Restaurants are willing to stay open 24 x 7. Both associations will submit a detailed plan to the BMC.
BMC will soon issue a notification to permit theatres to be kept open 24 X 7.
BMC will club all the required licenses (Trade, Health, Signage, etc) in one license. A single license will be issued by the BMC for the validity of 10 years.
Mr. Sharad Ughade, AC, BMC has been appointed as the Nodal Officer for this initiative. Malls and Retailers can coordinate with him on Ac.gs@mcgm.gov.in.
Click here to view the minutes of the first meeting on 24 hours working. Please feel free to contact us on akshay@rai.net.in for any clarification on the same.
RAI is pleased to inform you that the Karnataka State Government has issued a notification permitting all Shops and Commercial Establishments in the state, employing ten or more persons, to be open on 24x7 basis on all days of the year for a period of three years, subject to the conditions mentioned in the notification. Click here to view the notification.
The Central Government introduced 'The Model Shops and Establishment (Regulation of Employment and Condition of Services) Act 2016 which has been one of the key asks of the Retailers Association of India for the overall benefit and the growth of the Indian retail sector. RAI has been pursuing all the State Governments to adopt the Model Act for enabling Ease of Doing Business.
The State Government of Maharashtra, Gujarat and Tamil Nadu have already adopted the Model Bill. Furthermore, RAI has worked with the Karnataka Government for formulating their State Level Retail Trade Policy.
We believe that move by the State Government with definitely enable 'Ease of Doing Business' in the State of Karnataka.
RAI had filed a writ petition before the Hon'ble Karnataka High Cour challenging the circulars/notices issued by Bruhat Bengaluru Mahanagara Palike (BBMP). These circulars/notices mandated that the name boards of shops/establishments have to be displayed in the Kannada language with 60% of the display board in the Kannada language and the remaining 40% of the board can be in other languages. Non-compliance would have led to the cancellation of trade licenses.
The Hon'ble Karnataka High Court has granted interim relief to RAI members and directed BBMP to not take any action. Click here to view the order copy.
The Petition has been filed by RAI on behalf of all RAI members; Members having a valid membership are entitled to the interim relief.
While it is now not mandatory to have 60% of the name board in the Kannada language, members are advised to have name boards in the Kannada language as well, along with any other languages at their outlets in the state.
The state government of Telangana has renewed the notification for 365 days store opening permission in the state. The renewed notification is valid for a further period of three years. RAI, on behalf of the entire retail fraternity, thanks the state government of Telangana for considering its submission and encouraging Ease of Doing Business in the state.
The State Government of Maharashtra has issued a notification revising minimum rates of wages to the employees employed in the scheduled employment viz. 'Employment in a shop or commercial establishment' in the state of Maharashtra for skilled, semi-skilled and unskilled labour in the state w.e.f. 24th July 2019.
The State Government of Maharashtra has issued a revised notification exempting Bubble Plastic material used for wrapping the material at the manufacturing stage or is an integral part of manufacturing from the purview of the ban issued under the Maharashtra Plastic and Thermocol Products (Manufacture, Usage, Sale, Transport, Handling and Storage) Notification, 2018, subject to compliance of the conditions laid down in the notification.
Click here to view the notification.
RAI has been working with the State Government of Maharashtra and is a part of the expert committee formed by the State Government in regard to the plastic ban. Members are requested to share their views/suggestion on the attached notification on akshay@rai.net.in
We are pleased to inform you that the State Government of Tamil Nadu has issued a notification permitting shops and establishments to remain open 24x7 subject to compliance of appropriate conditions specified in the notification. Click here to view the notification.
We believe that this is a progressive move by the State Government and will give a substantial boost to employment generation. The move will also benefit the consumers in terms of more convenience and accessibility.
Earlier, the Central Government had introduced 'The Model Shops and Establishment (Regulation of Employment and Condition of Services) Act 2016 (hereinafter referred as The Model Bill) on 29th June 2016 which has been one of the key asks of the Retailers Association of India for the overall benefit and the growth of the Indian retail sector.
Subsequently, RAI has been pursuing all the State Governments to adopt the Model Bill. The State Governments of Maharashtra and Gujarat have already adopted the Model Bill.
Retailers Association of India submitted a representation on Section 49A of Central Goods and Services Tax (‘CGST’) (Amendment) Act, 2018' which doesn't allow to utilize CGST and SGST credits until IGST credits are fully exhausted towards making the payment of IGST, CGST, and SGST. Click here to view the representation.
A delegation from RAI also met Shri Yogendra Garg, Principal ADG, GST of government of India to explain their concerns. Shri Garg understood the concerns and stated that the amendment carried out by way of insertion of Section 49A is to impose a restriction on cross utilizing CGST / SGST credits against IGST liability when IGST credits are available. Furthermore, he assured that the matter would be looked into and indicated that he will explore to allow IGST credit for payment of CGST and SGST in the ratio of 50 percent each.
Subsequently, after consistent follow-ups, RAI's efforts have yielded results. The sequence of IGST credit utilization has been changed by introducing Rule 88A. Based on the said Rule, IGST Credit will first be utilized against IGST liability and the balance credit will be available for set off against CGST "OR" SGST based on the option of the taxpayer. With this new mechanism, there will be no credit accumulation of credits in CGST and cash payment in SGST which was expected due to Section 49A. Click here to view the notification.
It’s a good news for retailers and related businesses operating in the state of Haryana as the Logistics, Warehousing & Retail Policy 2019 comes into force after the Haryana Cabinet notifies it. The policy has been drafted in consultation with Retailers Association of India (RAI) and is a concrete step towards facilitating ‘Ease of Doing Business’ for retailers and businesses operating in the retail ecosystem. Click here to view the policy.
Shri Ashok Sangwan, IAS, Honourable Director-cum-Special Secretary, Industries & Commerce Department; Adviser, Civil Aviation, Haryana and Special Secretary to Govt. of Haryana, Civil Aviation Department had announced launching such a policy at an RAI Summit in Delhi in September last year.
“We are coming up with logistics, warehousing & retail policy in consultation with RAI. With logistics we see retail as the driving forces of the state’s economy and have made several concessions and considerations to help retailers grow,†he had said.
The policy aims to transform Haryana into a global Logistics, Warehousing and Retail hub, which is well equipped with state-of-the-art Logistics & Warehousing infrastructure, a conducive regulatory environment and a mechanism for maximizing returns for retailers and providing best buying experience to the end consumer.
The policy has specified fiscal incentives to Logistics and Warehousing Sector which will help Haryana to become a preferred consolidated logistics hub on the lines of Mumbai and Bengaluru.
Some of the regulatory reforms specified in the policy that are beneficial to retail are:
1. Single desk clearance mechanism for all permissions and licences to start and operate retail stores in the state
2. Setting up of Retail hub on minimum land area of 5 acres may be permitted in agricultural zone in Low and Medium potential zones
3. Retail enterprises shall be allowed to operate 24X7 (three shifts) subject to compliance of appropriate condition
4. Retail enterprises have been allowed to offer part-time employment
5. Women employees have been permitted to work in all shifts of retail enterprise subject to compliance of appropriate condition.
“With the notification of this policy, Haryana becomes the fourth state to have a separate policy for retail trade (after Maharashtra, Andhra Pradesh and Karnataka). RAI is happy to work with Govt. of Haryana on the policy and we believe that this will be a game-changer for Logistics, Warehousing and Retail businesses in the state. Reforms in the policy such as single desk clearance for licenses, setting up of retail hub, and permission to employ part-time workers among others are progressive steps that will help take retail in the state to the next level. We hope others states too will follow suit,†said Kumar Rajagopalan, CEO, RAI.
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