Stock clearance is the priority before GST: Guwahati IT dealers

While the nation is getting ready for the Goods and Services Tax (GST) regime to be implemented from July, the local dealers and distributors in Guwahati shows concern over the reduced demand in the industry. The industry is busy in liquidating the stocks but no one is ready to get into new stocks. There is demand for some products, but larger stock buying is not there. GST has been the biggest indirect tax reform in India after Independence. After much deliberation, the GST bill has been passed in the Rajya Sabha and is set to be implemented next month.

Talking to The DQ Week, Dilip Jain, Infotech International, a local distributor in Guwahati shared, “As GST is coming from 1^st July, the dealers are not really getting into buying stocks of the IT products. It’s all about demands now. As the demand comes in to the dealers, they buy products in accordance to that only. The market is really slow right now, dealers are not buying stocks. Hopefully the conditions will be better in July after the implementation”.

Dilip in the talking further added, “There is no clarity among the dealers so far about the whole process of GST rates and to be on the safer side they are not willing to get into new stocks before 30^th June. The IT products are getting higher MRPs as announced by the government recently; hope this won’t be a problem for the sales afterwards. As I am doing business with HP, which is a distributor friendly company so if we face any loss because of GST then also HP is there to support us as verbally communicated by them. We are focusing on other products like antivirus meanwhile”.

Sonu Goyal, Vision International, Guwahati says,”We don’t have any proper knowledge regarding GST, we are just communicating to our chartered accountants and seeking clarity over GST, our IT association “NECTA” is also helping up to some extent towards the same issue by organizing some seminars on GST. Right now we are just focusing on liquidating the present stocks”.