Mumbai: GST is for the greater good, say local businessmen amid slowdown

After the implementation of demonetisation we all remember the one common hurdle that faced us mdash be it a vegetable vendor or a private company employee everyone had to stand in long lines at ATM kiosksNow nearly a month after GST coming into play the effect is a temporary slowdown in various industries one that does not deter or worry the business owners as they remain confident of bouncing back once the lean period is over as well as maintain their stand of GST being for the greater goodWith wholesalers not buying from scrap dealers the latter say they will have to bear GSTrsquos aftereffects Representation picScrap dealersDhanda has been thanda for a monthWhen midday visited scrap dealers in Kurla most said GST had affected their business Some said wholesalers werent ready to buy scrap automobile and machinery parts from them for now Ours is not a big karobaar we will have to bear whatever GSTs consequences are said Mohammad Javed Chaudhary 60 owner of M J Scrap Corporation in Kurla which has been around in the neighbourhood for the last two decades Yes there has been a difference after GST has been rolled out dhanda has been thanda for the last month because when we buy scrap from people we have to pay GST on itAccording to him the tax on scrap used to be around 4 per cent which has now become 18 per cent Thats a reasonable hike and makes people think twiceVaibhav Salvi owner of Translink Express at his office in Andheri PicSatej ShindeCourier companiesBusiness will bounce back in sometimeThe tax has increased from 15 per cent to 18 This has created misunderstanding among people said Haresh Lalwani of Panther Worldwide Couriers which primarily deals in international couriers Businesswise yes it has affected us but it is better in the long run Earlier we used to get our goods from Bengaluru in five days now we get them in three as there is no octroiAccording to Vaibhav Salvi owner of Translink Express in Andheri a company that deals with exporters who need to courier packages abroad its the changes in the paperwork besides the fact that exports are down in general till exporters receive further clarity on GST that has been affecting business However he too hailed GST as a good and positive thingBharat Chedda owner of Rangeela Exports at his shop in Zaveri Bazaar PicBipin KokateJewellery marketZaveri Bazaar sees blocked cashflow over confusion regarding refundWhen GST was being rolled out people were staying away from jewellery shops till rules got clearer Now theres a new problem for Zaveri Bazaar The new rules have come in at a fast pace for us we were not aware of the kind of paperwork needed said Bharat Chedda owner of Rangeela Exports that has been dealing in wholesale export of imitation jewellery for 17 years As per him there have been changes in the documentation process which has been affecting business One major change was that before July 1 all exports were done on H form meaning there was no tax for imitation jewellery he said The exporter was supposed to give the supplier the H form But now because the suppliers are charging GST we have to pay it first and then get a refund from the government But we dont know how we will be refunded He however stood firmly by the implementation GST has opened up everyones sense of working Earlier there was a lot of hankypanky some would refuse to sell on bill insisting cash payment Now everybody has become straight Soon there will be clarity he addedGarments amp TextilesJust a procedural slowdown for nowAs per Raghunath MB senior president sales and marketing Mafatlal Industries Arvind Mafatlal Group there has been a slowdown in the textile industry but not the garment sector Garments and yarn were taxed earlier Hence GST doesnt bother them The issue is only for the textile industry where there was no sales tax or excise for years So it was bound to cause some delay as everyone was going to have take their GST numbers Its a procedural slowdown he said When asked for how long does he see the slowdown continuing he added Another two months till everyone gets their GST numbers in place But GST isnt a bad move because at the end of the day youve to benchmark all people on a common tax systemThe diamond market in Panchratna File picDiamond tradersNo impact on us yet will wait and watchA diamond trader midday spoke to who exports mainly to Thailand and Hong Kong and deals in wholesale said There has been a slump in business but its not because of GST Nearly 90 per cent of our business is cashbased ie unofficial That is one of the reasons why GST has had no real impact But slowly as and when people get into paying officially well come to know what the actual effect of GST isHe also said the business model of the industry had improved marginally after GSTs rollout Earlier it the diamond trade business was 90 per cent cashbased now it has gone down to 70 per centRupesh Gandhi owner of Pratap Brothers at his shop in Zaveri Bazaar PicBipin KokatePrecious Metals MeterNo takers for gold because of rebateRupesh Gandhi owner of Pratap Brothers an 80yearold shop on Zaveri Bazaar road that deals in retail of precious metals said consumer confusion existed in the first fortnight after GST People who want to buy gold are facing problem because of the rebate he added When they buy gold locally they have to pay GST but there is no clarity on when they will get back this GST credit from the government Thats why they are hesitating to export as wellHe pointed out that a significant jump in the tax rate had also adversely affected business The tax was 12 per cent earlier now its 3 per cent meaning those who come to buy gold and silver have to pay 18 per cent more When does he see the industry bouncing back to normalcy It will take another six months but we are ready