The upcoming GST has landed traders and distributors of consumer goods companies in a quandary.
Akbar Khan, the store manager of Barakah Beauty Solutions, a beauty products wholesaler and retailer in the busy Crawford Market of Mumbai, is a worried man. One can see customers swarming into the shop and making bulk purchases, but Khan is complaining about shrinking sales. “These are retail customers. The bulk of our business is wholesale, and that has dipped significantly ever since the Goods and Services Tax (GST) has been announced. Retailers, too, have nearly stopped buying or they are buying just what they need,” he says.
Khan, a wholesaler dealing in brands such as Lakmé, Nivea, Lotus Herbals and Shahnaz Husain, has also reduced his inventory by 20-25 per cent. Most of the beauty products, especially cosmetics and skincare goods, now fall under the 28 per cent slab under the GST (earlier, the tax was 2226 per cent) and he does not want to be stuck with surplus stock on July 1 when the new tax regime kicks in. “The MRPs (maximum retail price) will change, and we do not want to hold the old packs,” he says.
With the demonetisation fiasco largely an incident of the past and consumption finally back on track, the last thing that the trading community wants is a major disruption in the form of GST. Of course, the concept of uniform taxation across the country looks great on paper. But traders are hardly prepared for the complexities that followed – a zero tax rate plus four different tax slabs plus some cesses and more. In fact, there is confusion galore.
Denne historien er fra July 02, 2017-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra July 02, 2017-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
MISSING ADVISORS
INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE
TURNING A CORNER
SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE
REALITY CHECK
INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?
TRUMP'S TRADE TANGO
The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?
"The essence of the Trump administration will be transactional”
Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more
MEDIA Juggernaut
THE JOINT VENTURE BETWEEN RELIANCE INDUSTRIES AND DISNEY CREATES AN ENTITY THAT OWNS MORE THAN 100 TV CHANNELS AND WILL HOLD A MONOPOLY ON CRICKET BROADCASTS, POSITIONING IT TO NEGOTIATE AGGRESSIVELY WITH ADVERTISERS
'Gap between haves and havenots is narrowing"
Tanvee Gupta Jain, Chief India Economist of UBS Securities India, on India's consumption story and the risks to the Indian economy
Rural Hope, Urban Fears
Industry enthused by signs of a revival in rural demand, but fresh concerns emerge over urban consumption
CRASH LANDING
The Supreme Court's order to liquidate Jet Airways, after prolonged insolvency proceedings, brings the focus back on the actual effectiveness of IBC
Indictment and its Aftermath
US prosecutors' decision to press charges against Gautam Adani and others in a case of alleged bribery could hit the group's ambitious expansion plans