GST becomes bane of small businessmen : The Tribune India

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Manav Mander

Tribune News Service

Ludhiana, December 6

It has been more than four months but traders and businessmen are still facing problems due to goods and service tax (GST). Small traders and dealers are facing difficulties. The worst affected are those small traders who don't come under the GST purview.

During the time of its implementation, it was stated the new tax system would sort out difficulties faced by small businessmen. However, it has actually added to their woes. Big wholesalers are still shying away from doing business with those traders who have turnover less than Rs 20 lakh, hence are without GST numbers.

Wholesalers say their accountants advise them to deal with only those traders who have GST numbers. Otherwise, it can create problems for them.

The wholesale traders are reluctant to deal with the small retailers who do not have GST numbers. "I deal in clothe and pick stuff from Ambala. But after the imposition of GST, things have become really difficult. "Not many wholesalers are ready to give delivery to those traders who do not have GST numbers. Since my turnover is less than Rs 20 lakh, it is not compulsory for me to have a GST number. But wholesalers insist on doing business with only those who have GST numbers," said Santokh Singh, a cloth retailer.

A wholesaler at the AC market said he was not aware of the complexities of the new tax system. "My tax expert has advised me not to deal with any trader who does not have a GST number, as it can create problems for me. I am only following his advice," he said.

Wholesalers say no to traders not under GST purview

Sharan Sharma, who deals in garments, said he had less stock post GST. "Wholesalers are not ready to sell goods to small traders. Why should I get GST number when I am not covered under it. Wholesale traders have refused to sell products to me because I do not have a GST number. I am actually running into losses because I get limited stock these days. I am thinking of switching over to new profession," he said.