Aurangabad Channel Partners Confused about GST
GST is a brilliant move to check fraud and drive more businesses to the formal economy, but by taking it one step further and linking tax payment by a supplier, to the availability of Input Credit to the buyer, the beauty of the system completely breaks down. This is what the Aurangabad Channel Partners thinks.
The problem is the sideeffects of cash flow, improper accounting, and reduced ability for people to trade with new suppliers and new customers - since there is uncertainty about the business outcome.
Under normal business circumstances, a transaction get ‘completed’ when the goods/services are delivered, invoices received, and the payments made against them.
Talking to The DQ Week Pramod Dere, Cyber Peripherals says “There is no sell out in the market as we are facing the lack of customers because at this point of time, no vendor wants to have stocked products. We are not getting any commitment for any vendor. It will be not wrong if I would say that the markets are confused about GST.’’
Rohit Maria, Accord Computers, says” Small Business typically suffers unevenness of cash flow. Even a simple one-week delay in receiving money for goods sold, throws their routine out of gear. ”
However, by the additional linkage of payment the beauty of the system breaks down. No longer can a business assume that the transaction is ‘over’ - and has to wait until 10 days after the return cycle (which is, 30th of the following