GST Effect on Chaiwala and Plumber

Hello all, as per heading you all might got it that I am writing about impact of GST on a tea stall and a plumber’ business.

All over the internet so many debates are going on, how GST is benefit or how it is destroying the business, but here I am talking about a fact of two persons who are running their own business on very small scale and fulfilling the needs of their family.



Few days back I was sitting with one of my friend who is a plumber and a proprietor, he don’t earn a handsome amount but enough to take care of his family. When I was discussing with him about his work life he said that, it was going well but after the GST came into the regulation I might lose few clients who are the big contribution of my income because they are asking me to get registered under GST and provide the bill with GSTIN otherwise they will stop working with him and he said that he is not alone he has a chai wala near his work place who provides tea to all the nearby corporate staff and he is also been asked to get GSTIN or stop providing tea.

Further he said that we have an issue to get GSTIN first of all we have to spend some money on the procedure but it is one time expenses so its ok but later we can’t afford to pay for monthly GST Return because what we earn almost 50% of that is expense of GST Return and finally he said Only God knows what gonna happen.

 

Let me clear you that why those clients are asking for GSTIN, because if they will work with unregistered dealer they have to apply Reverse Charge Mechanism in which first they have to pay the tax to Govt. and later they will get the set off in next month.

By considering these two cases of chaiwala and plumber I can’t start the debate whether GST is right or not but one thing is clear that Govt. should think about the compliances under GST Regime and make it ease of doing business rather than losing the business.

 



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