Most businessmen of small scale enterprises feel that while demonetisation brought short term challenges the implementation of the Goods and Service Tax (GST) almost ended their businesses.
Today when exactly a year has passed after demonetisation, small businessmen and traders across Delhi and Noida are a disgruntled lot. And it is not just demonetisation that they attribute their sluggish pace of business to. Most businessmen of small scale enterprises feel that while demonetisation brought short term challenges the implementation of the Goods and Service Tax (GST) almost ended their businesses. Talking to City Spidey a group of businessmen said that the first three months after demonetisation had been the worst days for them.
Rajkishor Bhatt, a resident of United India Apartments in Mayur Vihar Extension who owns a shop of automobile parts said, “In the first months after demonetisation the labour class was adversely affected. However, the detrimental impact of GST continues.”
Raj Kumar, a small businessman in Noida told City Spidey that demonetisation has indeed made life difficult for small businessmen like him. “It had restricted the flow of money in the market for about six to eight months. However, GST has almost stopped the money flow. We are forced to trim our labour force as we do not have money to give them,” Kumar stated.
Shoaib Ansari, who operates from a makeshift warehouse near Gheja Village and manufactures plastic goods said, “After demonetisation our sales had dipped by half. But GST has been far worse. Sales after GST have tumbled down by almost 80%.”
Dheeraj Singh, a trader in Noida Sector 18, who sells electronic goods too said that demonetisation had almost ended his business. He also said that it had very adversely impacted small scale vendors. Singh went on to add that despite the challenges he had somehow managed to keep his business going. However, after the introduction of GST he feels there is little hope for survival.
“Paying GST makes a product more expensive. Moreover, if I procure products without paying GST from Delhi, I shall not be given an original bill. Also there are chances of getting caught on the Delhi-Noida border by the inspecting authorities,” laments Katiyar another small time trader.
The government mandate of using PAN card and Aadhar card has also complicated the market dynamics. “Money lies with the upper-class who can afford to buy gold. However, they are uneasy about using their PAN card and Aadhar card while purchasing. Today a lot of clerical work is involved while making high value purchases in gold. This is because the government wants to ascertain the credibility of the gold buyer,” said Omveer Avana, a goldsmith.
Today, people are apprehensive about spending huge sums as they feel that they are constantly under government scrutiny. “For making purchases of Rs1 lakh or above, you require a PAN card. The formalities have increased and these steps are not benefiting anyone. Around 99% of the money went back to banks after demonetisation. It brought no positive change in the economy. Also the changed banking procedures are proving to be challenging and cumbersome for the common man,” said Pradeep Sharma, a consumer.
