GST ( Guess Some Thoughts )

In November 2016 while Demonetization process was on, almost everybody passed through a mixed feelings . It was love-hate relationship with policy makers and lots of confusion prevailed in the minds of urban community. Middle class is large sum in Indian Demographics and the same people started participating lately in democracy process of India.

Decision of demonetization was almost jerk and people hardly got a time to think. consequences were related to personal level and management of the money was almost like secret. Everyday news and information poured in , almost everyday in Nov-Dec 2016 was full of rumors , interpretations , messages , news , articles all related to Black economy which slowly get converted to cashless economy. We have passed through this season and felt unique mixed feelings which was almost difficult to describe in words.

GST is almost arrived and will be fact in almost a month starting July 2017. GST decision was not a jerk but a planned decision. It was systematically discussed among legislators at length and taken its course over the time. GST can be considered as long untiring process which fetched interest at all levels. While India is in transition passing through major changes related to indirect taxes, I observe many hidden interests been glimpsed while this is been through. I can predict and sense clearly that MSME is going to be largely affected by GST process.

There are several reasons to arrive at this derived conclusion and one of the most affected logic is based on GST compliance. Narration and circulars which are discussed during recent time in GST seminars are nothing but Compliance. Rules could have been changed , taxes could have been raised but spreading the feeling of FEAR in compliance may create more havoc then anticipation. People at large perceive GST which can bring stringent laws and will increase prices of Goods & Services.

One more reason of smelling disruption is from Govt readiness. We can hardly see any infrastructure and Human resources allocated for implementation of GST. We have also observed similar situation related to RERA. RERA being implemented from 1st of May 2017 and one can hardly see Centre and/or state Govt readiness to implement RERA to this part of the region.

People may not describe it properly but views largely gathers can be pen down as ......

1. Big companies and Corporate are GST ready and also know their PLAN A B C D
2. Small traders and Manufacturer yet not clear about GST and perceive as business killer
3. Government is late in announcing slabs for various products and services. Getting late in decision create more havoc in the minds of people.
4. with all due respect, officers at large are not clear about duties and services. They may bring back "amaldarsahi" ( typical ) where work is less and corruption could be more.
5. Media could have participated little better way but it is recorded in history that GST awareness is very less through media. Please note when I say awareness it does not mean advertisements.
6. GST might have missed its soul to bring back holistic approach to save environment and tax all derivatives strategically to protect and nurture our Planet.
7. Wasted interests of few may bring golden bucks for them as they are shrewd and can take maximum advantage of system loopholes. I guess Govt intellect will take time to reach out to them easily.
8. Politics of GST may harm our economy for sure. Capitalism , Nepotism may dent the economy which will be hardly seen in near future.
9. GST whole exercise will be futile if the prices are not lowered significantly to bottom of the pyramid.
10. It is clearly seen Big Players met and discussed thier points with government beofre GST policy announced and small players make noise once it is near to implimentation.
11. Many of the goods / Services now covered in the GST, Unity of businesses are clearly seen while looking into slabs their products fall into.
12. Many professionals set thier business strategy based on GST. Most decided not to get involved in GST liasions.
13. Technology new demands have emerged and upgradation related to technology will be key point in coming times.
14. Banks seem clear winner in this game. Interest Rate must come down , as per informed sources.

Sanjay Punjabi

[email protected] | 8th June 2017