Au­rangabad Chan­nel Part­ners Con­fused about GST

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The DQWeek (Mumbai) - - FRONT PAGE - JYOTI BHAGAT Au­rangabad Con­tin­ued on Page 2

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

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