Retailers telling you to 'buy cheap now’; GST truth is something else

NEW DELHI: Well, they actually do not know what’s in it for you. Or that is what a detailed survey by Bank of America Merrill Lynch suggests.

The brokerage noted that most of the store keepers of retail outlets in financial capital Mumbai have no idea how GST will impact their businesses. They are still waiting to be guided by company managements.

The foreign brokerage noted that most are simply using GST to urge customers to buy ahead of a change in the tax structure “arguing – with knowledge – that prices will go up”, it said.

That said, the brokerage in line with consensus believes that the impact of GST on sales volumes and earnings may extend beyond the June quarter.

“At rich valuations, any hiccup in numbers could be a risk, though we think the Indian market continues to be joined at the hip to emerging equities. We stay cautious near term,” it said.

Here's what the brokerage found when it hit retail stores recently.