What changes you have seen in the demand pattern ever since GST has been implemented? Is the impact positive for the industry and how much has the increase in cost for machines/ imported parts been noticed post GST? What is your opinion about GST in the a
Post GST, the price of goods like sewing machines and spare parts have come down by 5 to 10 percent. However, due to the market situation, demand has been reduced by 50 to 60 percent till date from July last to Feb 18. The top line has been affected by at least 40 percent for FY 2017-18.
Sanjay Mehta, Sunny Sales, Kolkata
After the implementation of GST, manufacturers were a little worried about the system of GST and thus they were skeptical about investing fresh funds in new machinery and projects. But now they have realised that the prices have not increased; in fact, it has decreased for imported machinery and spare parts. Since the last three- four months, we have been negotiating on good projects and it indicates a positive impact and increased market demand.
Santosh Lade, rotondi Group, Mumbai
As far as GST is concerned, it has certainly given a level playing field to all players in the machinery segment. However, it is not properly implemented as different segments like customs, couriers, shipping, etc., have their own interpretation of GST. There should be more clarity on GST and HNS codes. Machines have become cheaper because whatever GST is paid by the companies is refunded, but there is no change in actual cost of machines. According to one recent notification, the customer ends up paying GST twice and how can one claim GST twice on a single machine? In my opinion there should be more clarification forthcoming on GST.
Viraf turel, turel Group, Mumbai
The industry is right now going through a slow phase for a number of reasons. If we look at exports, the industry is suffering owing to the revised drawback rates. Due to this factor, all expansions are on hold and there is no demand for new machinery. In the domestic segment, the major manufacturers are not in trouble as for them everything remains the same; the worst hit are the small and medium scale manufacturers as they were working only in cash. There is also a lot of negativity in the industry because of GST. As far as machinery is concerned, it has certainly got cheaper; but someone who is paying GST on a machine and then on thread sees jobwork suffering. The immediate solution to the problem is refunding of taxes. However, despite all these challenges, we are optimistic about the future and we are sure that these tough times will make the industry stronger and help in adapting to innovative solutions.
Sanjay Jha, Unix Stich Machines, Surat
The GST is definitely a positive move, it is only that its implementation and understanding is taking time. Things are going to be better from the next year as any big change is liable to bring along some teething problems and we expect all to be resolved soon. rajesh Bihani, rajasthan international, Delhi