Future Retail has resolved the margins issue with almost 80 per cent of its suppliers, including FMCG major HUL, under the new GST regime.
According to a PTI report: The companies have agreed to pass on the pre GST margins to the Kishore Biyani-led retail firm in the new tax regime starting from tomorrow except some small suppliers, which would be resolved soon.
“We have resolved the issue of margins with most of the companies. We have also resolved issues with HUL,” Chief Executive Officer, Future Group, Kishore Biyani told PTI.
He was further quoted by PTI as saying: “We have resolved almost 80 per cent issues. Some small players have been left and it would be resolved one by one”.
The company would pass on the benefits on certain items arising out of GST to its customers, he added.
“We are now fully geared up for GST and would update our systems in the mid night today,” Biyani told PTI.
Under the GST regime, absolute margins available for the retailer has been reduced as it is subsuming the factory-gate levy and excise.
All the modern retail outlets have demanded the makers to enhance their margins.
Now the company is well equipped to handle the changes under the GST regime in terms of “supply chain, stocking, pricing” and “would benefit us a lot.”
“This will be beneficial to the consumers, it will drive consumption in the country. It will build manufacturing and services,and it will make our nation prosperous,” he was further quoted by PTI as saying.