The GST is finally a reality, it is early days and mixed reports are coming in, in some sectors the going is good and some are getting stuck at various stages. There are teething problems in the implementation and as trade adhering to the norms, are discovering how difficult/easy the implementation is. Since these are early days the trade is over cautious, not to be caught on the wrong foot, therefore are treading one baby steps at a time. Which is the right approach, though it will slow down the system alright but the flip side is we may not get into unnecessary trade disputes later on. So cautious approach is most welcome.
Then there are still another set of people which are in the denial mode and want that GST should not be levied on Textiles? The Surat Textile industry is a case in point. They have held the entire garment industry to ransom by declaring their equivocal stand against the GST? The prolonged retraction of some 3 Lakh Traders/manufacturers and workers of the Surat Industry are demanding a complete roll back on the GST. No National association has come out in support of the Surat industry and they have been left alone to fight their battle.
This was not the case with the garment industry when excise was imposed by the Mr. Pranab Mukherjee. All had protested from Ludhiana to Tirupur, from Kolkatta to Kannur in one voice. So the excise duty had to be repealed. Now the industry is divided and many feel that the Government is justified in levying GST, as most of the inputs like Thread, Yarn, elastic, narrow fabric etc have a nominal rate of GST and they would be deprived of input tax. And most of sellers would regard dealing with trade that has no GST, such purchase as URD and thus debar them from the general trade that is taking place.
Let see who blinks first in this case, there are smaller mutinies in other product categories, but the RMG sector has remained silenced by the 5 & 12% norm for 1000 category of mrp. They have accepted in principle that it is the consumer who will pay for this ultimately and since it is One India and One Tax system, there is a larger playing field so that doesn’t provide for undue advantage to anybody.
What many have missed the fine print is that the difference between import and local industry is now just between 10% to 25% which is the IGST so the cost is not very high. Now this can be trouble times for Indian manufacturers since the efficiencies of exporters from Bangaldesh, Srilanka and China is well known so they can cover this cost difference and price their products at par or even lower than our local produce. We should not end up in killing an industry that had withstood the rigours of various regimes and served the needs of our people, while generating a source of livelihood for millions who live by it.
The July issue has articles on the changes witnessed in the Chinese Retail industry, how they are impacted first with the mall culture and now the emerging e-com sector. Other features in this issue pertain to the Lace Halter bra which is currently trending, besides we have the coverage of MY MY, a premium lingerie store in Ahmedabad that has redefined lingerie retailing.
So get your fill of the monsoons as they have arrived all over the country ending months of heat and stickiness. And Happy Reading to all of you.