The Indian textile and apparel industry had made a mark in the world with a history of exquisite craftsmanship and global fame. India has reached a point in time where the designs are exclusive, experimental and intriguing enough for the global fashion industry to notice. The apparel retail industry in India is one of the largest in the world with a massive material and manufacturing base. Being one of the most significant contributors to the Indian economy, it holds close to around 14% of the total industrial production.
Tax Levying on Apparel Retail Industry Before GST
Before the implementation of Goods and Service Tax in July, the tax levied on the readymade apparels included 4-5 % VAT and 2% excise. There used to be a time when only the metros, mini-metros and tier 1 cities’ Indian consumers would dream of buying branded clothes from global brands present in India. But with time, increased exposure to fashion trends and growth of apparel e-commerce stores and retailers, tier 2 and tier 3 city population have taken branded clothing close to their hearts. Many branded apparel stores in India and online clothing retailers had been giving heavy discounts on their offerings and catering to a wide range of interested customers. Consumers were just getting comfortable in this new era of buying apparel when GST finally happened to India.
Post GST Effect on Retail Clothing Industry
The drive to implement a simplified yet a robust tax system on goods and services brought change for the entire apparel industry in India. Unsure of what tax would be levied under GST, the e-commerce apparel retailers were luring customers by giving discounts ranging from 25% to 90% to finish their pending stocks. Though many apparel stores had attractive offers like ‘Buy 2, Get 2 Free’, the apparels were costlier on account of GST as offers were not inclusive of taxes in many cases. Customers were in for an unhappy surprise when they arrived at the clothing stores with ‘Flat 50% off and taxes extra’ greeting them. Any piece of apparel or clothing would be taxed at 5% GST is the taxable value of the goods does not exceed Rs.1000 per piece. All types of apparel and clothing of sale value exceeding Rs. 1000 per piece are being taxed at 12% GST.
It’s just not the consumer expectations that are disturbing the retail clothing stores’ owners and management. The technical expertise to deal with online systems can be a real challenge. Thus, most of them might need intermediaries to take them through the registration process, adding to their registration cost. Zopper Retail is an apparel store POS system that uses technology- in the buying, inventory management, pricing and more- to integrate GST smoothly. The clothing businesses need to explore the power of the Zopper Retail for day-to-day effortless operation and round the clock apparel store management. Here are some of its salient features:
BARCODE / SCANNER
Speed up the process billing process of your retail clothing stores with this POS system offering newly created barcodes that can be integrated with a barcode scanner. This helps in managing more customers and enormous sales of your business.
With this apparel store POS system, every time a new inventory arrives, it is easy to create a new batch and receive updated information about different unit prices and near expiry stock.
Now, you can generate and send purchase orders to the vendors easily with this software. In this digital era, all the vendor contact details are stored in one place and can be used for any communication and follow-up via email due to this efficient clothing store POS.
POS & PAYMENTS
Zopper’s POS for apparel retail store is equipped with the latest technology that works both online and offline. Multiple benefits such as split payments, receive bills on paper, SMS or email, etc. can reach the customers without any hassle. Design and manage your discounts and schemes as per the need.
With this apparel store POS software, you can reward your customers by discovering the most loyal ones and rewarding them with special offers. Offer them reward points for various actions like purchase, referrals and track these points through an easy-to-use app.
Zopper Retail is a GST-ready clothing store billing system that helps you easily manage multiple outlets with real-time updates. One can remotely manage, operate and configure your business at any point of time.
Choose the way to simplified yet effective apparel store management with Zopper Retail today!