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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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
The Under previlaged are to be protected why because there is no protection in times of volatality and on slought of e commerce portals grabing their bulk share of business whether it is grocary, fruits, vegitables & what not. There is another factor also to be looked before taking any stern action against the "Small" is Fiscal indisciple on part of Governments in terms of wasting tax money on populistic free bees and doles etc and increase in indirect curruption in Government policies in a clever manner through favourtism for the benifit of select few. more
Jul 25
The big question is, what is the definition of "small? Some "small" vendors earn mind boggling revenue. I am reminded of the pani puri seller in Tamil Nadu (where pani puri is NOT a hot item - roadside stalls in cities are rare) who got GST notice because his online revenue had crossed Rs 40 lakhs during the financial year. God knows what his cash revenue was. more
Jul 25
yes laws should be protecting small vendors like fruit sellers auto drivers groceries road side sellers etc more
Jul 24
Aap kahan atke hoo bhai.. think economy level. ! think positive.. Huge margin collect in STQC & CCTV Camera buyers have paid for it. Everyone has contributed. Ghar pei lagaya hii hoga na ? You can post for eCom digesting GST inputs & delivering only in channel the outputs. more
Jul 24
