Shopkeeper under GST net
Small shopkeepers are ditching UPI payments. And, going back to cash.
1) See, small businesses have very small profit margins to begin with
2) Many of these vendors: if they register under GST, would have to start adding GST to their final bills
This could be upward of 18%
3) This is significant price increase for their customers. And, it impacts the shopkeeper's sales.
The argument that shopkeepers merely "collect" tax. What's the big deal?
Well, the deal is end users care about end-prices.
The seller wants to sell more.
The buyer wants to buy cheap.
Additional "GST" drops sales.
4) Not to mention: that small vendors usually do not bifurcate their person and professional accounts. Many in their families cannot even get access to bank accounts.
So a father running a shop would take money on behalf of their son, daughter, wife, brother etc.
All this can be tagged as "income". And, GST can be slapped on that.
Expecting small shopkeepers to do sophisticated accounting is stupidity.
5) Fine: many small shopkeepers evade taxes. True. Better system needs to be built.
But, seriously: hunting small guys? That's what the priority is? When you let political parties, IPL dudes, corporate honchoes run free?
1000s of crores are outright wasted and syphoned off. But, the focus is to grab 100s of crores, while forgoing 1000s. more
1) See, small businesses have very small profit margins to begin with
2) Many of these vendors: if they register under GST, would have to start adding GST to their final bills
This could be upward of 18%
3) This is significant price increase for their customers. And, it impacts the shopkeeper's sales.
The argument that shopkeepers merely "collect" tax. What's the big deal?
Well, the deal is end users care about end-prices.
The seller wants to sell more.
The buyer wants to buy cheap.
Additional "GST" drops sales.
4) Not to mention: that small vendors usually do not bifurcate their person and professional accounts. Many in their families cannot even get access to bank accounts.
So a father running a shop would take money on behalf of their son, daughter, wife, brother etc.
All this can be tagged as "income". And, GST can be slapped on that.
Expecting small shopkeepers to do sophisticated accounting is stupidity.
5) Fine: many small shopkeepers evade taxes. True. Better system needs to be built.
But, seriously: hunting small guys? That's what the priority is? When you let political parties, IPL dudes, corporate honchoes run free?
1000s of crores are outright wasted and syphoned off. But, the focus is to grab 100s of crores, while forgoing 1000s. more
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As New Income Tax Rate for FY 2025-26 (AY 2026-) is 12 lax & the cost of living has gone high the minimum gst slab also should be proposed to increase to appx 60lacs & the retailers should be asked to file annually simple format returns. They should be helped & motivated by gst offices to file returns. The challenges face by retailers are numerous incl business loss due to eComm operators. Infact eComm should be observed & monitored also & checked their fileing is correct as per the transactions. more
Jul 27
tax people before sending should have verified the nature of business the person is doing and used common sense for the same unless it was meant to harass small time vendors .Since they are not able to catch big time vendors who somehow escape with the help of auditors etc so road and street side vendors who do not understand these terms are easy prey to these tax people who does all these kind of mindless activities to please whom who knows our FM should issue clarifications on these and not keep her lips sealed in these kind of harassment activities or make the rules clear more
Jul 26
I think GST needs more understanding. When any whole seller buys from the factory, pays GST. When he sells to a retailer, it's already tax paid. Now, 2 options: Opt1. If the retailer is registered for GST, he claims back GST paid by him to the wholeseller, and when he sells the same to a customer, GST is charged from the final consumer. Which is only 1 time charge, no multiple times. Opt2: if the retailer is NOT registered for GST, he is a consumer sort for the Govt. So, GST is charged from him, and he sells to the consumerat at GST paid price plus profit. So in any case, GST is charged once only, NO multiple payments. The reason, and retailer doesn't want to register for GST is NOT THAT A CONSUMER WILL PAY TWICE, as a matter of fact digital transactions through GST network tells about his Profit also. If total Profit earnings (after all related expances ) during the financial year exceed the exempt amount , he has to pay Income Tax on nett profit. Small retailer earning an annual profit upto Rs 12.75 Lac will not pay any Income tax, and should not be afraid of registering under GST. That is how a Samosa seller earning 1 cr per annum, buying an Audi / BMW came under Income tax range, not detected all these years. Assence is final consumer pays GST ( half to centre, half to state Govt) only ONCE. I am NOT a tax expert, so open to correction. Thanks. more
Jul 26
Revenue and profit are two different things. Did he have a separate business account? Suppose it is 36 lakhs, ie 3 lakhs per month, ie 10000 per day? Is this believable? Do you know how many Pani Puris he has to sell every day unless they are designer Pani Puris? Hope my Math is correct! Even if it is true this might be a rare case. Most roadside vendors work on a slim margin and it is hard work. During bad weather there is no business. Do you really want to tax them. Since last week some of the vendors demand cash or ask for extra money to offset the tax. Large scale merchants openly say if you need receipt add GST to the price. No receipt, no tax, less cost and some customers forego the receipt especially if it is a large item or large bill. By the way I have stopped paying service charge in restaurant as it is not mandatory. But I do pay generous tips directly to the waiter or waitress. more
Jul 26
If obe is earning above a certain limit, tax has to be paid. Howeever , Whoever suggested this, should have practically observed the vendors, verified their receipts and then implemented it, logically and practically. The implemention with minimal impact is important. Demonetisation brought in UPI payments, even though it's primary objective of black money and corruption reduction did not work. For now, the govt should put a pause to this exercise, do a thorough study and then implement it with minimal impact, so that UPI gains more wider acceptance. Let us not go back to carrying cash and looking for change. more
Jul 25
