There are the evidences of massive disruption in both small and medium businesses all over the country. This can lead to the reason of changing at the rates, intricacy and the cost related to it that is forced on the business persons to adopt. Talking about the charges, they have been decreasing on certain products and for some they just shot up. The daily items like jams, bread, biscuits, sauces, ice creams belong to the highest tax slab along with the phenol and detergents. There rates have been increased up to 18%. This is the not only the thing that makes the traders worried.
If we take the retail end, the problems are divided according to the complexity. The shopkeepers are selling the products according to the GST rates and added to the final bill. To be very honest, it is a very hectic job and requires time predominantly in any business. Small businesses are also hit by the GST rules before they got prepared for it. It is not at all an easy task that the whole process changes overnight, according to the GST format. Above all, it requires excellent computing skills to maintain it.
The opportunist consultants are already looking for the traders who want to run their business, according to the new tax regime. In actual the small retailers are already burdened down with the e-commerce and the way it works. It seems that nothing has brought a change in the e-commerce field. But, this is not the all truth. There is another side too. Most of the small business persons are welcoming the GST in order to move into a modern way of continuing their business.
Eventually, the GST helps in opening a new business or growing the smaller one. Previously, there are lots of issues and procedures that have to be faced, but because of the GST, the procedures have come into a consistent and helped in centralizing the registration process. If we talk about the current structure, those having business more than Rs. 10 Lakhs required to be registered under the GST. And, those having the turnover of Rs. 10 lakhs to 50 lakhs are payable to tax at a lower rate.
The best thing is a reduction in the transportation costs who formerly delay the shipment of the products. As the interstate development cost is wiped out, the transportation process becomes less expensive and tedious. Thanks to the GST that it cut down all the expenses and helped with the movement of the goods across the states.
Concluding on this, the ruling government has taken this step very intelligently. This definitely brings a vast change in the new businesses and startup in the unique way. Certainly, for both small and medium businesses, there are some immediate challenges. But, still the GST has brought a positive change and proven to be beneficial for them. Not only this, they can get the benefits from the input tax credits (ITC) and help them to extend their footprints.