To the Consumers:

1)      Convenience of shopping all year round.

2)      They need not resort to online shopping anymore due to weekly offs

3)      Customer complaints can be addressed personally on any day of the week

To the Retailers:

1)      Opportunity for retailers in Maharashtra to harness their true potential

2)      No more hassle of applying for exemptions

3)      A chance at fair competition with the online giants

To the Economy:

1)      Ample employment opportunities for the youth in Maharashtra, retail sector being one of the most employment generating sectors in the economy

2)      Boosts trade in the State.

3)      More days of shopping which will enhance more consumption and result in generating revenues

4)      Break even time can be achieved at a much earlier stage.

However, the shops will have to comply with the statutory requirements laid down by the government:

1)      Give employees a weekly off

2)      Working hours should be restricted to 9 hours a day and no more than 48 hours a week.

3)      The shop employees must have a nine-hour duty with one-hour break

4)      Above all, women employees should be allowed to leave by 9.30pm

5)      Provide women employees with the lockers and resting areas, safety being their main concern

6)      Extra staff has to be appointed for extra days

7)      No children (under 14 years) should be employed, and all employees should have an ID card.

In a bid to woo the working class and night owls, shops across the state will remain open up to 10pm, against the existing deadline of 8.30pm. Now we can surely say “Happy days are here”!

Image Source: http://goo.gl/S2kdOP

RAI has submitted Election Manifesto to major political parties proposing that in order to put India back on track of high and sustainable growth, priority attention should be given to sectors and issues where initiatives can be taken without the requirement of major investments and time lag before the results are visible. This should be done without neglecting the medium and long term measures to realize the full potential of the Indian entrepreneurship and its economy. Hence, due attention must be given to the internal trade and retail sector keeping in mind the following objectives:

1. To bring the farmer, and the consumer closer so as to make available to the common man his daily necessities at a reasonable price and ensuring remunerative returns to farmers
2. To make SMEs more internationally competitive by smoothening internal trade and movement of goods by reviewing and removing all obsolete and redundant statutory rules and procedures
3. Seamless movement of goods and services across the country
4. To facilitate creation of job opportunities for the youth, particularly the women, by necessary skill formation in all parts of the country by evolving a suitable Public Private Partnership (PPP) model.

For achieving the above stated benefits and to have a planned and focused growth plan, we have submitted pointers for a draft National Retail Policy. Please find the election manifesto here.

Conversation/Renewal of Existing Food License/Registration Deadline Extended To 4^th August 2014

Image Source: http://goo.gl/uopvu2

Food Safety and Standards Authority of India vide their Advisory dated  4th February, 2014 has extended the timeline up to 4th August 2014 for the Food Business Operators seeking conversion/renewal of existing License/Registration under the repealed Orders by invoking the sub-regulation 2.1.2 of FSS (Licensing & Registration of Food Business) Regulations, 2011. Please find the advisory here.

Retail CFO Summit 2014

RETAIL CFO SUMMIT 2014

The Retail CFO Summit was organized on 21st March, 2014 at Hotel Trident, Mumbai. The attendees of the Summit got valuable insights from the stalwarts of the retail world. The Summit saw CFOs of major retailers including Future Group, Levis, Lifestyle International, Globus, Arvind Brands, Aditya Birla Retail, Bestseller, Religare, ITC LBRD and many more as speakers. The Theme of the event was: Maintaining Health & Creating Wealth.

The highlight of the Summit was an ice-breaker session by Dr. Devdutt Pattanaik, Chief Belief Officer, Future Group on how the power of myth can be leveraged in making business decisions.

Panel discussions on interesting topics such as Funding in Retail: Opportunities and Challenges, Corporate Governance and Risk Mitigation and Managing Expenses in Retail were undertaken. More information on the Summit is available on the Summit website:  http://rai.net.in/cfo

Clarification in Filing Returns For Food Business Operators

Image Source: http://goo.gl/uopvu2

The Food Safety and Standards regulations require the Food Business Operators (FBOs) to file annual returns in respect of each class of food products handled by them within 31st May of every year for the period April 1st to March 31st. RAI represented that as there are thousands of foods SKUs being sold by retail stores from a huge number of outlets all across the country, only the manufacturers/packers should be made liable to file returns. FSSAI confirmed that the rule to file returns by May 31st of every year is applicable only to manufacturers/packers. However, there is no written communication from FSSAI for the same. Hence, RAI submitted a representation to FSSAI asking for a written confirmation in this regard.

RAI’s Submission To DGFT To Allow E-Commerce Shipments From Express Mode

Image Source: http://goo.gl/aqNgMR

RAI submitted a representation to the Directorate General of Foreign contending that shipments which are sold online using online payment options should be given an option to export the shipment through express mode instead of going through the tedious shipping bill process. This will ensure lower transaction cost for SMEs and also fulfill the commitment of delivery on time. Please find the representation submitted here.

RAI’s Submission To Govt of Maharashtra For 365 Days Working 

Image Source: weddingbycolor.com

RAI submitted a representation to the government of Maharashtra contending that retailers should be allowed to stay open 365 days a year to cater to the needs of the working class consumers. Further, shops should be allowed to be open 24 hours and women employees should be allowed to work beyond 8.30 pm subject to precautionary measures for safety. We proposed that the government of Maharashtra should adopt the Delhi model which allows shops to open 365 days a year and till 11 pm on the condition that labour interest will be protected. Please find the submission to the government here.

RAI’s Submission To Govt of Maharashtra For Packged Commodities Rules

Image Source: http://goo.gl/y3AuYr

RAI submitted to the government of Maharashtra that retailers stock thousands of Stock Keeping Units (SKUs) and it is practically impossible to check each and every SKU for the compliance under the provisions of Rules and the Act. Hence, the packaged commodities rules should be made more pragmatic in order for its smooth implementation. Further, RAI submitted various concerns such as retailers should not be held accountable for violation of packaged commodities rules by manufacturers and packers, issuance of warrantee by manufacturers according to the provisions of food safety and standards act, classification of pre-packaged commodities and arbitrariness in compounding fee. Please find the submission to the government here.

RAI’s Submission To Govt of Maharashtra For Essential Commodities Act

Image source: bigbookshop.com

Modern retailers face difficulty to comply with the provisions given in the Essential Commodities Act, 1955 such as limitations on stocking limits of essential commodities as supermarkets and hypermarkets see heavy customer footfalls and high sales volumes. As a result, retailers cross the thresholds specified for various commodities under the ECA within very less time of business and require frequent replenishments thereby increasing the supply chain costs. We submitted to the government of Maharashtra that the stocking limits should be increased and should be linked to a figure that reflects the volume of business generated by retailers. Please find the submission to the government here.

Image Source: mid-day.com

RAI submitted a representation to the Commissioner of GHMC stating the impracticalities in implementation of the circular to incentivize jute/cotton carry bags. Please click here to view the circular issued by GHMC and here to view the representation by RAI. After viewing RAI’s representation, GHMC commissioner called a meeting and released the Press Notice stating that plastic carry bags can still continue to be charged with rates of Rs. 2/- & Rs. 5/-, based on sizes; notice encouraging Jute / Cotton / Paper Bags should be displayed in retail stores and retailers should display the board stating the cost of carry bags and incentive being paid to the customer those who carry Jute / Cotton Bag w.e.f. 15th Sep 2013 as mandatory with the below slab:

• No Incentive for shopping below Rs. 500/-
• Rs. 2/- as Incentive for Shop Rs. 500/- to Rs. 1000/- and
• Rs. 5/- as Incentive for Shop of Rs. 1000/- & above.

Challenging the circulars, RAI has filed a writ petition in Andhra Pradesh High Court and the matter came up for hearing. The respondent has asked for a time of two weeks to file a counter affidavit to which the Judge agreed.

 II.    Enhancing FII investment in Retail

Image Source: indianxpress.com

RAI had submitted a representation to the Ministry of Finance seeking enhancement of FII limit in retail. In this regard, RAI delegates met Dr. P K Mishra, Dr. C S Mohapatra, Mr. P K Bagga and Mr. Manu Vettickan from the Department of Economic Affairs, Ministry of Finance. The officials of the Department of Economic Affairs appreciated our concern and assured that they will take up the matter with the Department of Industrial Policy and Promotion and take positive action in order to benefit the retail industry. Please click here to view the representation submitted to the Ministry of Finance.

III.  Forum to exchange views on Tax related issues by Ministry of Finance 

Ministry of Finance has constituted a Forum Chaired by Dr. Parthasarathi Shome, Adviser to the Finance Minister, for Exchange of Views between Industry Groups and Government on Tax Related Issues or Tax Related Disputes. We have submitted a representation to Dr. Shome and are seeking an appointment of a high-level retail industry delegation in the forum. The tax related issues are addressed in the representation are: Levy of Service Tax on Renting of immovable properties; Service Tax on Electricity Reimbursement to Landlords; TDS on Credit Card Commission; and Input Tax Credit of VAT Paid on Purchase of Capital Assets. Please click here to view the representation submitted.

IV.   Retail as an essential service and giving IT Industry status

To ensure that occurrences like bandh do not disrupt the regular functioning of retailers, RAI has urged Shri. Prithviraj Chauhan, Chief Minister, Maharashtra to declare retail as an essential service in Maharashtra. Giving retail the treatment of essential service will ensure that no undue influence is created to compulsorily shut stores and take a hit on sales. Moreover, RAI also insisted that retail be included in reserved category and tax rates as provided to industrial sector should be provided to retail sector.

V.  RAI representatives meet Legal Metrology Director

RAI represented to the Legal Metrology Department stating that since the responsibility of labelling is of the manufacturer/packer, it is not right to penalize a retailer with similar penalties as applicable to the manufacturer who merely stocks their (manufacturer’s) produce to make it available to consumer and has nothing to do with the declarations made on the packs. Further to it, RAI representatives met Mr. B N Dixit, Director, Legal Meteorology Department.

Mr. BN Dixit appreciated our concern and stated that the liability of retailers is now reduced as compared to manufacturers/packers. Please find the notification giving the reduced liability for retailers here.

VI.  RAI meets Insecticide Board Chairman

RAI representatives met Dr. Gurbachan Singh, Chairman of Insecticide Board and Dr. BS Phogat, Chief Secretary of Insecticide Board asking to have a classification of insecticides on the basis of risk posed. Dr. Gurbachan Singh and Dr. BS Phogat appreciating our concern asked us to address the concern to the Joint Secretary, Ministry of Agriculture. Please click here to view the representation submitted to the Insecticide Board.

VII.  Zero Percent EMI Schemes

Image Source: hindu.com

RAI represented to the Reserve Bank of India seeking a change in the rule to ban zero per cent interest rate scheme for purchase of consumer goods. As 20-30 per cent of consumer sales happen via such zero per cent EMI schemes, banning such schemes would have detrimental implications for the retailers. RAI submitted that instead of banning, RBI could have laid down guidelines for disclosure/structuring of scheme by banks which would lead to a greater transparency to customer. Click here to view the representation to RBI. We requested Indian Banks’ Association to submit a similar representation to RBI which was not done by them. We received a reply from RBI stating that they appreciate our concern but the instructions are for the banking sector and they have not received any representation from them.

 VIII.   Tax on footwear

RAI submitted a representation to the Ministry of Finance to allow footwear industry the same taxation status as the textile industry. VAT on footwear ranges from 12.5 per cent to 15 per cent in different states, whereas VAT on readymade garments is 5 per cent in all states. We submitted that garment and footwear are apparels that are to be worn to cover the body and under the international Harmonized System Code, footwear is placed alongside textile which makes it imperative to grant the same taxation structure as textile industry. Click here to view the representation submitted.

The Greater Hyderabad Municipal Corporation (GHMC) had issued a circular stating that the money of the carry bag collected from customers who buy plastic carry bags should be refunded to customers carrying cotton/jute bags. RAI has submitted a representation to GHMC stating the impracticalities in its implementation. Please click here to view the representation.

II.   RAI & retail industry delegates meet insecticide board Chairman-Dr. Gurbachan Singh

With respect to the concerns around regulations surrounding the sale/use of insecticides, insecticides need to be classified as per the risk posed. The Chairman acknowledging the concern, promised to grant relief. Please click here to view the representation submitted.

III.  New regulation for protection of women from sexual harassment at workplace

The Gazette of India received the assent of the President of India and published the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The bill was passed in September 2012 in the Lok Sabha and subsequently in Rajya Sabha in February 2013. The Act states to provide protection against sexual harassment of women at workplace and for the prevention and redressal of complaints of sexual harassment and for matters connected or incidental to it. Please find the notification published by the Gazette of India.

IV.  License for operating shops for 365 days a year in Maharashtra

RAI met Shri. Arvind Kumar, Principal Secretary, Ministry of Labour (Maharashtra), in order to understand the new procedure approved by the Labour Minister of Maharashtra for applying for license to run shops 365 days a year in Maharashtra. In the new procedure, the license will be directly granted by the Government and the reference to the Labour Commissioner or Brihanmumbai Municipal Corporation (BMC) will not be required. The applications for the said license will be entirely processed by the Labour Secretary.

Shri. Arvind Kumar said “This administrative reform will reduce the time taken to grant license and will be granted within 30 days from the date of application.”

The circular issued by the Ministry gives all the necessary documents required while filing the application. Also, an affidavit is issued stating that there is no child labour employed in the establishment, there are no complaints about sexual harassment and that the establishment is run and operated under the Maharashtra Shops and Establishment Rules, 1948 and under Minimum Wages Rules,1948, which needs to be signed by the authorised representative. Please find the circular issued.

V.   Andhra Pradesh High Court directs state Government to renew Civil Supply License

Andhra Pradesh Government had increased the security deposit for obtaining the Civil Supply license from Rs. 3000 to Rs. 25,000. In response, Spencer’s Retail, a member of RAI, contested the increase of the deposit and approached the High Court. Andhra Pradesh High Court directed the Andhra Pradesh state Government to renew the licenses. The Court also directed to pay 50% of the increased amount back to all the retailers in the state and considered the earlier deposit to be given credit while renewing.

VI.  Food Safety and Standards

License number along with FSSAI’s monogram is mandatory and must to be displayed on the principal display panel of the food package. View the notification.

VII.  RBI grants extension on making credit/debit-card present transactions PIN based

RAI had represented to Reserve Bank of India to grant extension to make debit/credit card transactions PIN based. RBI had also mentioned to issue only EMV Chip International debit/credit cards. In this regard, RBI granted an extension of the deadline from June 30, 2013 to September 30, 2013. To view the representation submitted to RBI click here.

VIII.  Appellate Tribunal for Electricity grants stay in response to RAI’s petition against levy of Cross Subsidy Surcharge

RAI filed a petition against the order dated 10.5.2013 passed by Maharashtra State Commission directing large and unprecedented increase in levels of Cross Subsidy Surcharge applicable to various categories of consumers who have changed over to the Appellant (Tata Power) for the supply of electricity from the Appellant on the distribution network of the Reliance Infrastructure Limited (R-Infra). The Appellate Tribunal (APTEL) has granted stay; and the Appeal is listed for hearing on 5th August. Click here to view the stay order.

IX. RAI’s initiative to charge plastic bags reduces its consumption by 58 %     

The Ministry of Environment and Forests, Government of India had recommended a ban on Plastic Carry Bags. RAI had represented to the Union Government and various state governments that plastic carry bags should not be banned. One of the major concerns of the various governments has been that of waste management. RAI in its earlier representation to the Government had suggested that Plastic Carry Bags be subjected to the Polluter Pay Principle i.e. plastic carry bags be available for use by customers at a charge. This would help reduce the use of plastic bags thus deterring the government from banning its use.

The Ministry of Environment & Forests, Government of India, has come out with the Plastic Waste (Management and Handling) Amendment Rules, 2011. This has also now been published in the Gazette. This notification suggests the following economic instruments. Click here for a copy of the notification.

Carry bags have been defined as bags made from any plastic material, used for the purpose of carrying or dispensing commodities but do not include bags that constitute or form an integral part of the packaging in which goods are sealed prior to use. The central notification talks about the carry bags being of a minimum of 40 micron thickness.

With this notification it has become mandatory to recover the cost of the plastic carry bags from customers. Members of RAI are joining an initiative to encourage prudent use of plastic; save the environment; and are committed to making cities cleaner and greener.