Indore: Every business has battled to maintain profits through the cash crunch following implementation of Goods and Service Tax (GST). Discussing they took the challenge of understanding and filing GST and remained afloat through FY-2017, city women entrepreneurs shared their business story with Free Press.
A tough month of GST, finally settled
Since my business is relatively new and does not fall in the slab of GST, it didn’t directly affect my business. I was quite happy when I initially came to know about it because it is a good and transparent way to tax.
However, I had to struggle through the month when my vendors refused to supply goods due to GST. It was difficult to understand the tax slab and scheme. I took consultation and studied about the GST to understand and manage it. Now, I am able to get flow of goods from vendors again. I am expanding my business to Pune. Based on the present communities that we have formed there, the response towards our products is good.
– Businesswoman Bharti Mandole
Downfall to no profit and no loss
GST is no doubt beneficial for the government but it should not be helpful for cottage industries. The tax is wrongly imposed on sanitary pads and depriving women of their basic hygiene. When I look back at our business for the FY 2017, I found it is disappointing.
We had been earning profits every year. This year, we witnessed sudden drop because of competition. Our prices rose because of GST and that made marketing difficult. Thankfully, we sailed through with no profit and no loss. I am hoping that the government will come up with better schemes to help women entrepreneurs. We have planned to collaborate with cottage industries and start new line of business.
– Viha Pandya Gadge
Growth achieved, faced cash crunch
We have achieved 100 per cent growth. GST did not affect our growth as we mostly deal with corporate. We passed on GST to our clients and they further passed it to their customers. Our cost remained same and so did the profit. Our growth goals were also achieved as they depend on our creativity. We have been getting regular orders but have team constraints.
I would be expanding our team in FY-2018. We did struggle to manage GST as it affected our pay cycle. First, we have to understand the tax regime. Normally, we pay taxes every six months so our cycle was balanced. Paying GST every month changed the cycle and we had a cash crunch. I remember being tensed about salaries as we did not have a large working capital. However, we have finally managed the cycle. I hope the government will also be utilising tax received for public benefit timely as well.
-Businesswoman Mahima Sharma