GST spoilsport as business tanks in Mohali

Tribune News Service

Mohali, October 17

Businessmen in this town are not busy this festive season. Shopkeepers claim that sales have declined by 25-50 per cent as compared with the business last year. They claim they lost business to GST.

Most businesses, be it jewellery, sweets, readymade garments, footwear or electronics, have witnessed meagre sales ahead of Diwali. Shopkeepers said the business activity in the market had been disappointing. They claimed that the recent tax reform was one of the major factors for the poor business.

Even Dhanteras failed to bring crowds to the markets, said jewellers and shopkeepers selling utensils. Jewellery stores and utensil shops saw low footfall even as it is considered auspicious to buy jewellery items or utensils on Dhanteras.

“Very few customers turned up at jewellery shops here today. Our business is nearly 40 per cent down than the last year,” said Sarbjit Singh, president of Mohali Jewellers Association.

Shailender Anand, senior vice-president, Beopar Mandal, Mohali, said the slowdown in the market had contributed to the low business activity this year. “Demonetisation and mindless introduction of GST caused the slump. Their ill-effects are visible now, especially when festive season is at its peak,” said Sarbjit Singh.

Echoing similar sentiments, the proprietor of Katani Sweets in Phase 3B2 said the usual hustle-bustle, which markets used to witness during the festive season in the past, was missing this year even as Diwali was just two days away. “People have become more prudent and cautious about spending money after demonetisation. GST has added to the confusion,” he said, adding that his business was down by 30 per cent this year.

Sandeep Singla, the owner of Kumar Mega Mall, said people were cautious about purchasing expensive gifts. “Certainly, the market sentiment is down this year,” he said.

Another garment vendor said, “GST has made some goods expensive. Also, tax rate varies for different items. Overall, the business is less than the expectation.”

Electronics sale has a great fall

• The sale of bed sheets picked up during the last two-three days, but there were few takers for electronic items, say vendors in Mohali. “A lot of people have started buying electronics online, which has led to the decline in sales at stores,” lamented a shopkeeper in the Phase 3B2 market. 
• Sale of diyas (clay lamps), traditionally associated with Diwali, has peaked. Some new products, including diyas with gel instead of wax, electric diyas and fragrant diyas were popular, said a vendor in Phase VII market.
• Predictably, decorative lights are selling at a premium ahead of Diwali. “Colourful, translucent Chinese lanterns are a recent addition which has been appreciated by the people,” said a vendor.