GST rate cuts: Kirana stores struggle to adjust
India recently announced GST rate cuts, reducing the number of tax slabs.
The goal is to simplify taxes and potentially bring prices down, but small kirana stores are having a tough time adjusting—especially since they're stuck with old stock bought at higher rates.
Retailers expect 2-week adjustment period
Many small shop owners worry they'll lose money selling their old inventory at the new, lower prices.
They expect it'll take about two weeks for things to settle as people get used to the new system—especially in smaller towns where updates spread slowly.
For now, weekly restocks and fixed margins mean shoppers might not see price drops right away.
Brands, distributors, and retailers are working together to ensure smooth transition
Consumer goods brands are rolling out new price packs by mid-October and keeping distributors in the loop.
Meanwhile, retailers are updating their tech systems, training staff, and putting up signs so customers know what's changing.
Business leaders say sales might be bumpy for a bit but should smooth out as everyone adapts.