GST 2.0: Small retailers see short-term losses

While some retailers have already reduced prices to reflect lower tax outgo, most continue to seek clarity

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DESPITE the new GST rates taking effect on September 22, retailers across sectors like pharma FMCG and textiles are struggling to pass on the revised pricing for end products to the customers.

Many retailers claim that they don't have clarity from the companies regarding the final pricing for the consumers.

Many retailers expect it will take weeks before consumers see the impact on shelves.

The biggest challenge for retailers is unsold inventory purchased under older tax slabs.

Several retailers said it will be challenging to pass on the new rates unless the stock is cleared.