GST will overwrite the existing business style: Ranchi IT Dealers

GST is expected to cut down the cost of goods manufactured and distributed in India which in turn will benefit the end consumers. Also GST will be bringing one unified standard rate which is charged on all products all over India which in turn will remove the hurdles of large variances and different tax rates that have prevailed in VAT.

GST harmonizes central and state tax administration which in turn reduces duplication and compliance costs. Apart from these pros, in talking to The DQ Week, some dealers from Ranchi expressed their concern of doing business all over the country now.

Local dealers in Ranchi believe that as GST is set to be launched in July, it will completely overwrite the existing business style.

MP Agarwal of Agarwal Computer from Ranchi shared, "We all are waiting for GST but this is a major concern that Dealers, distributors and retailers are first required to pay central tax on the stock of goods in hand, even on those goods on which manufacturers have already paid central excise duty. Apart from this major concern, the dealers are excited about dealing outside the region after GST implementation but then there will be bulk orders and for that more manpower will be required. There will be more work, more pressure.

In my understanding we should be excited about the fact of dealing outside the region but then at the same time should be equally prepared also. For dealers this will be a task of dealing all over India as margins, volumes, bulk orders and many other aspects will be there. Dealing all over nation will be a problem for collection, paper work will increase, small dealers will also be requiring accountants etc".