The mood in the run-up to the GST rollout is vacillating between anxiety and anger as traders in Ranchi, Jamshedpur and Dhanbad are desperately trying to fathom what course their businesses will take once the new tax regime is imposed from June 30 midnight.
What is being touted by the BJP-led Union government as a landmark simplification of taxing goods and services has raked up the same sense of uncertainty that the business community had grappled with after demonetisation last year. And, this terrible gut feeling is not hostage to political inclinations.
"There is resentment brewing across the business class. Many who are advocating GST in the open secretly concede that they are still not sure if and how trade will improve from July1," said a senior official of Federation of Jharkhand Chamber of Commerce and Industries (FJCCI) who is closely associated with the state BJP.
Workshop fail
FJCCI president Vinay Agarwal said that although the government had been hosting workshops for stakeholders over the past couple of months, there was a lot of confusion among small-time traders.
"That is because the GST Council is constantly changing rules and provisions," Agarwal said, citing an example from a meeting convened by the state advisory council on GST on Thursday.
"The state government issues permits for goods transportation. We asked if that system would be scrapped now, but there was no clear answer. We were told the software would be altered, but there was no commitment on when," the FJCCI president said, adding that he sensed a major lack of coordination between various taxation wings of the government.
Vice-president of Dhanbad Zilla Chamber of Commerce and Industries Surendra Arora too conceded confusion among small-time traders about the process of documentation and registration. "Furthermore, taxes on necessary items like electrical switches have been fixed at 28 per cent, which is unreasonable," Arora said.
Fear of DeMo days
The business community at large is anticipating a fresh round of pandemonium in trade like the one that had gripped the festive season last year after demonetisation.
"Bazaar ka haalat kharab ho jayega Durga Puja-Diwali ke time. Aap note kar lijiye. (Business will go bust during Durga Puja and Diwali. Mark my words)," said the owner of a prominent garments showroom on Main Road, Ranchi.
The businessman underscored that theoretically, GST sounded good; but practically, its rollout would be plagued by glitches.
"For three days now, the GST registration portal isn't working properly here. Also, many small traders are not aware about technicalities. Streamlining the process will take at least three to four months. Traders who are trying to deplete old stocks are already suffering losses," he said.
Wholesale traders in Jamshedpur said introduction of GST and a complicated tax return process would result in losses to the tune of over 25 per cent.
"We cannot hire expensive chartered accountants to file our returns on a daily basis. As of now, we are yet to understand the intricacies of the returns filing process. We had suffered because of demonetisation and we fear a rerun," said Anil Modi, a resident of Jugsalai and a garments dealer.
On protest path
Jharkhand Thok Vastra Vikreta Sangh and Jharkhand Cine Exhibitors Association (comprising owners of single-screen cinemas) are openly protesting against GST in Ranchi.
The former had joined a three-day nationwide strike of garments wholesalers, which ended on Thursday, while cinema owners are complaining that a GST of 18 per cent will boot them out of business.
In Kolhan, wholesale cloth merchants observed are bracing for an indefinite strike if the government didn't roll back the 5 per cent GST on textile items, which were exempt from taxes so long.
"We want clarity on tax structure and also simplification of returns filing process. If the government does not pay heed, we may shut shop indefinitely," said Kamal Jain, a resident of Jugsalai, Jamshedpur, and president of Jamshedpur Wholesale Cloth Merchants Association.
FJCCI president Agarwal hoped that the GST didn't turn out to be a damp squib like demonetisation. "Let's not fool ourselves. All of us initially supported demonetisation thinking that black money will be brought back to country coffers. We don't think that has happened yet. Hope GST won't fail us too."
The hopeful
President of Singhbhum Chamber of Commerce and Industry (SCCI) Suresh Sonthalia is, however, more sanguine of a seamless transition to the GST regime. "We have invited experts from across the state and conducted nearly 20 workshops. Most traders are aware of the new rules," he said.
SCCI general secretary Prabhakar Singh is anticipating initial hiccups though. "We had felt the jolt during introduction of VAT (in 2005). Similarly, the GST will have repercussions for a couple of months. But, let's not forget the long-term benefits," he said.
Dial for help
State commercial taxes secretary K.K. Khandelwal sought to allay fears, saying they were ready for "smooth rollout" of GST and that challenges were already being tackled at a toll-free helpline (18003457020) from Thursday.
"The call centre has 50 people to shoot your troubles. Also, at circle office-level, GST Suvidha Kendras are being set up. If problems arise (after rollout), they will be addressed," he added.
Additional reporting by Animesh Bisoee & Praduman Choubey
