Bhopal: As one try to assess the implications of GST regime a month after its implementation, it seems that it has not much affected big business houses, traders but has hit hard small traders and neighbourhood stores to such an extent that it has jeopardize their very existence. Even luxury hotels and mega stores seem to have survived Goods and Services Tax jolt comfortably.
“In the coming times, only the Adani and Ambani will remain in business. Small traders like us will be wiped out,” said Shahnawaz, owner of Shimla Protein at Shyamla Hills in a bitter tone.
He further said “Our sales are down forty per cent due to GST. Nowadays, customers are purchasing limited items. We have no computerised system. If we pay GST, how will we manage rent of the shop, salary of staff and charge charted accountant?” he questioned.
In Courtyard by Marriott, rooms have become costlier for individual guests as the exemption from Luxury Tax, available to the Hotel till January 2018, stands withdrawn after the implementation of GST. However, the corporate guests would remain unaffected as they can avail input tax credits. Earlier, the hotel had to pay Service Tax only, which ranged from 9 per cent to 10.5 per cent.
In an emailed response to a query by Free Press, Anmol Kaur, Assistant Manager, Marketing and Communications of the hotel said, “From a hotel’s perspective it’s too early to judge (the impact of GST). Till the end of three months, nothing accurate can be commented”.
Similarly, Mohammed Amaar, front manager of hotel Noor-Us-Sabah said, “Our business has not affected due to GST but still we didn’t get any written notification from the finance minister on charge of printed tariff and guest. The clarity is still awaited,” he said adding “we have followed GST from the day one. Now, we are charging 28 per cent GST hotel rooms with a tariff of Rs 7,500 above and Rooms with tariffs less than Rs 7,500 are charged 18 per cent GST.” People are not clear on GST. They believe, what media is saying,” he further added.
“Initially it is difficult to understand and implement it, but gradually the problem will be solved just like notebandi,” said Satish Gangrade, president of New Vyapari Sangh. No doubt, it has affected 40 per cent of our business, the production of everything has become less whether it is manufacturers, suppliers, retailers, sellers or buyers, he added. M L Sharma, manager at Mrignaynee Emporium, GTB Complex said “There is no impact of GST on our business. Sales are good. There is increase in our sales, may be due to festive season. Since it is a government emporium so coming here asks for actual price.”
A grain trader, Vijay Rathore, owner of Mahendra Trader Company at Jumerati said “Since there is no tax on rice, pulses and wheat, there is no impact of GST on us. But the traders who sell branded products are facing problem because they are paying 5 per cent tax.” We may face problem during filing of returns as we will have to pay high to CAs and lawyers. We will also have to fill GST and code no. of buyers in forms, he added.
Akash Shrivastava, manager of Aapoorti Super Market at New Market said, “GST has not much impact on our sales. It is true that the prices of some cosmetics have increased following implementation of GST but on the other hand prices of food items have decreased. So, all in all, there is no loss and no profit.”
“Since July 1, we have closed store for updating billing software as per GST. The updating work is still not complete,” said Ajay Barha, manager of Priyadarshini Supermarket at New Market adding “Yes, it is true that we are incurring loss due to this but what can we do now. Our sale is Rs 10,000 per day. ”
‘Unprepared manner in which the GST was roll out has created a lot of problems for middle level and small level advertising and production professionals. Clients have put all works on hold citing incomplete information about new tax rules. They say, even CAs don’t have complete knowledge about the current tax policy,” said Gaurav Mishra, an Ad maker.
He furthers said, “This immature method of policy application just creates big negative impact over all businesses running especially on retail or on personal basis. First demonetisation and now GST, the manner in which they were implemented has hit hard the businessmen and they would more than a year to revive; Besides it has created a long term hidden impact on government and social structure of society.”
