With India being under a lockdown for over a month now, the retail sector has reported massive losses, impacting the GST revenues of the central and state governments. “The Indian retail sector has lost a gigantic sum of approximately Rs 7.50 lakh crore business in this period which has resulted in GST revenue loss to central and state governments to the tune of about Rs 1.15 lakh crores,” the Confederation of All India Traders (CAIT) said in a statement on Tuesday. For retailers, another big cause of worry also lurks as even after the government lifts lockdown, the customer footfall is expected to remain low with only 20% consumer turnover as compared to the pre-COVID-19 times.
Every one in five Indian retailers or about 20% of the country’s retailers are likely to face the heat of coronavirus and succumb to financial crunch with them shutting shops. This will also have a trickle-down effect on another 10% of traders who are dependent upon these 20% traders who are also likely to collapse as a consequence, CAIT said.