Running a Kirana shop is no longer a simple thing that it used to be a few years ago. It's not just about selling products to customers and earning profit. Earlier, when the competition was on the lower side, it was simple to know how to start Kirana shop and run ahead. However, at present, competition has become fierce, and important for store owners to know how to make substantial profits.

Many upcoming retail business professionals looking forward to knowing how to start the Kirana store feel insecure about the GST tax. And, find it problematic to make a profit after paying GST. So, for such retailers, we have created this blog to provide the benefits of GST on your Kirana store.

So, with no further ado, let's get started on the same.

A short introduction of GST for Retailers 

GST stands for Goods and Services Tax came into existence in 2017. GST comprises the combination of several forms of taxes that were running earlier including names like sales tax, service tax, excise duty tax, and more. After the inception of GST, it has reduced the burden of retailers to calculate a number of taxes on the purchase and sale of products. Instead, retailers can rely on one single tax called GST to calculate the overall profit ratio. On the other side, GST has high charges ranging between 12 to 18% which might leave a heavy burden on small-scale businesses. But have several ways to earn profit.

Another important thing you should know is the GST return for all the retailers to file every year. It's a legal document that contains all the information related to the purchase and sales of your grocery store products, GST applied on the same, and other tax credits. It is a legal obligation on the part of retailers to file this return every year in the authorization of Tax Administrative and calculate the net tax paid so far in the year.

Positive Impact of GST On Kirana Stores

To be precise, GST has been imposed on small-scale Kirana stores, grocery shops, and even big-size supermarkets in 2017. It has a great deal of effect on the retail business, while some have negative thoughts on the same. Despite that there are several positive impacts of GST on retailers and the are as follows

• Save on the logistic cost:As we have mentioned earlier, GST is the combination of several taxes that were imposed before 2017. In a way, GST allows retailers to save logistic costs by 2.5% with no such hassle of filling VAT, entry tax, and other taxes, separately. A one-time tax return is enough for retailers to manage their business efficiently.
• Seamless supply chain management: With the introduction of GST, now, there is no need for retailers to open product warehouses in different parts of the country. Instead, retailers can manage a seamless supply of products from various regions of the nation paying a single tax only.
• Increase profit margin: With the application of GST on retail products, there is no such need to pay extra for indirect and direct logistic costs. As a result, the overall cost of obtaining products from various sources has been reduced. Not only this, retailers can sell products at profitable prices and earn more with ease.

Conclusion

Know the tax-related insights of grocery store business to ideally manage the shop and calculate profit. For more information, get in touch with professional retail business consultants to learn more about GST and other means of business.