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.
The Reserve Bank of India has constituted a High-Level Committee on Deepening of Digital Payments (CDDP), under the chairmanship of Shri Nandan Nilekani (former Chairman, UIDAI), to accelerate digitisation of the economy and financial inclusion through greater use of digital payments. The Committee's mandate includes reviewing existing status of digitisation of payments and level of digital payments in financial inclusion, undertaking cross country analyses to identify best practices that can be adopted, suggesting measures to strengthen safety and security of digital payments, providing a road map to increase customer confidence in digital financial services, and suggesting a medium-term strategy for deepening of digital payments.
The Reserve Bank of India had invited RAI for a meeting with the CDDP to discuss the key concerns of the retailers with regard to digital payments.
Furthermore, RAI was asked to submit the pertinent issues related to acceptance of digital payments by retailers. Click here to view the RAI submission.
The Central Government 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. The Model Bill is a progressive move by Shri Narendra Modi Government since it enables states to choose to keep shops and other such establishments open 24×7 all through the year. This would give a substantial boost to employment generation and will also benefit the consumers in terms of more convenience and accessibility.
RAI has been pursuing all the State Governments to adopt the Model Bill. The State Government of Maharashtra has already adopted the Model Bill and introduced the Maharashtra Shops and Establishment Act 2017.
We are pleased to inform you that the State Government of Gujarat has also amended the Gujarat Shops and Establishment Act and the amended bill will be presented in the upcoming assembly session.
The key reforms introduced in the new bill are:
We believe that move by the State Government with definitely enable 'Ease of Doing Business' in the State of Gujarat.
Bruhat Bengaluru Mahanagara Palike (BBMP) had issued a circular which mandated that the name boards of shops/establishments have to be displayed in the Kannada language with 60% of the display board in Kannada language and remaining 40% of the board can be in other languages. Subsequently, RAI had submitted a representation to the State Government of Karnataka and filed a Writ Petition under article 226 of the Constitution of India in the Karnataka High Court challenging the BBMP circular as being illegal, void ab initio and ultra vire the Karnataka Municipal Corporations Act 1976.
After a series of hearings, the BBMP has confirmed before the Karnataka High Court that no precipitate action will be taken in regard to the issued circulars. Click here to view the order copy.
Retail Trade now has a separate Ministry and a Nodal Department. The Department of Industrial Policy and Promotion (DIPP) has been renamed as the Department for Promotion of Industry and Internal Trade. Click here to view the notification.
Retail is one of the driving forces that is propelling India’s economic surge in recent years. Its total size is US$ 820 bn, and its share in India’s GDP is 28%. Retail plays a vital role in transforming India into a major Economic superpower. This move will definitely help retail realize and reach its true potential.
The Government of West Bengal has renewed the notification exempting retail establishments in the state from weekly closure as mandated by the Shops and Establishments Act provided they comply with the requirements laid down by the government in the notification.
Please click here to view the renewed notification.
RAI had earlier represented the issue to the State Government requesting for the renewal and to include all the municipal corporations under the purview of the notification.
Please click here to view the representation.
RAI, on behalf of the entire retail fraternity, thanks the progressive State Government of West Bengal for considering its submission and encouraging Ease of Doing Business in the state.
The pan-India cyclothon Swasth Bharat Yatra by Food Safety and Standards Authority of India (FSSAI) under the Ministry of Health and Family Welfare that flagged off on the World Food Day, 16th October, 2018 has been receiving a great response from all stakeholders.
In just two weeks, the yatra recorded a participation of over 5000 volunteer cyclists covering 2,800 Kms across 11 States/UTs with 1,500 plus Eat Right Champions and 250 plus activations.
The Swasth Bharat Yatra is a key initiative under the ‘Eat Right India’ movement, FSSAI’s tribute to Mahatma Gandhi on the occasion of 150 years of his birth. The Swasth Bharat Yatra is the first phase of the ‘Eat Right India’ movement that will end in January, 2019. It involves criss-crossing the country on six tracks, covering 18,000 km with over 7,500 volunteer cyclists in about 100 days. This would not only mobilise the masses but also create a large pool of local community champions to sustain the movement. The Yatra would provide the trigger for cascading the message of ‘Eat Right India’ to every corner of the country.
Retailers Association of India not just supports the Eat Right India Movement and all its aspects but is a key stakeholder in it.
Bruhat Bengaluru Mahanagara Palike (BBMP) had recently issued a circular which mandated that the name boards of shops/ establishments have to be displayed in the Kannada language with 60% of the display board in Kannada language and remaining 40% of the board can be in other languages. It further provided that if any business/ person/establishment fails to abide by this rule or violates this condition, the licenses of such establishment will be canceled. BBMP issued another circular dated 30.07.2018 which reiterated the aforesaid language requirements and directed implementation thereof.
Subsequently, RAI submitted a representation to the Karnataka Government that implementation of the circulars is beyond the powers and purview of BBMP. Click here to view the representation.
Furthermore, RAI has filed a Writ Petition in the Karnataka High Court challenging the BBMP circular as being illegal, void ab initio and ultra vires the Karnataka Municipal Corporations Act 1976.