GST rollout: Traders in Nehru Place, Delhi’s IT hub, are a worried lot these days, the cause of the traders worry is the Goods and Services Tax (GST) and they do have a host of reasons to worry about. One big reason for these traders to worry is the higher number of returns which need to be filled by computer traders and a multiplicity of tax rates for the computer and computer accessories market. This is when the GST was envisioned to reduce the number of taxes. This is being coupled with a possible hike in tax for monitors larger than 17 inches and data cables, according to an Indian Express report. Traders in Delhi’s IT hub are not happy as they will face losses from the existing stock. The stock which is in the inventory of these traders was procured at a rate of 14 to 15 percent and will now face a tax rate of 28 percent under the new tax regime.
Anil Gupta, a trader who owns three computer hardware shops in Nehru Place, says that the GST will increase the transparency in the system due to its online system, the new tax regime will also bring many unregistered retailers into the tax mainstream. Gupta also says that he is not unhappy with the higher level of tax compliance and says that the higher number of tax returns won’t bother him as GST would be beneficial in the long run. Gupta said, ”I am working with a team of tax consultants and lawyers to help ease the transition from the current tat regime to GST. The new tax system could take some time to adjust to but in the long run, GST would be beneficial, it would also ensure compliance from retailers who evade taxes”.
Other traders in the market are not as upbeat as Gupta, chairman of the All Delhi Computer Traders Association, Mahinder Aggarwal says that the new tax regime would make dealing with taxes more difficult for traders. Aggarwal says ”GST should mean one nation one tax and we should have a single tax rate for the entire sector, but that is not the case”