Two of most biggest reforms in Indian Economy & its effect straight from the Ground level.
We may have already entered into the era of Post GST & RERA one of two biggest reforms in India. We may have heard in news,political circle its positive effects & betterment of future for Indian Economy.
In Media we are used to believe what every one says or makes us to be trusted source but how many of you really go through the reality . GST & RERA are a great step but what adverse effect it is having at the ground level is hard to believe but the real truth.
So I bring you straight adverse effect from Maharashtra & some connected people with me.
1. Adverse Drop in Cash Flow : The cash flow that each business had may it be a small kirana store or a multi storeyed clothing business has dropped unimaginable & lead to drastic fall in business. Every business is going through the same & effecting the other business connected to them. This is An GST effect or Demonetization effect coming to ground level we don't know but the situation is worse in long time & with no sight of stability in near future.
2. Compliance Trouble : GST or RERA may look easy to explain but someone running a small business & not under any system is facing trouble. GST is simple & can be filed by establishment itself but lack of spread of knowledge is leading to confusion. In RERA builders are already burdened with high land rates & huge stock of property unsold in MMR region itself & compliance under RERA are too strict for such people to follow. In Future what it means that only established builders are going to function & one who is stable financially to withstand this RERA storm.
3. Drop is Business : Since everyone is bundled into this storm the turnover is effected & leading to drop in business. The expenses are fixed but income becomes unstable leading to stressed situation. The introduction of these reforms are having fear among the business people & hence every one is playing a wait & watch situation. GST may be called as GOOD AND SIMPLE TAX but the effect if not a good scenario to watch.
4. Majority Effect : Everything under SUN is UNDER GST is something one should believe. Many Business,Industries that had no extra tax burden or very less tax burden have been brought under this regime which makes majority of people being effected. Its like Baby Feeding a business with understanding of new world of taxation. Some understand the flow & some make it complicated leading to confusion all around
5. RERA Trouble : RERA is one which every home buyer would be happy with but its has put an end to many infrastructure careers. Builders that have already invested & facing legal issues,High land prices are one to suffer the most. The property is already not selling plus the cost of compliance for RERA is another kick to their pocket leading to downfall of small builders.
This is something we are not used to hear in TV news,News papers or anywhere in public media but this situation is all around India where the functioning of business is highly unorganized. The reforms may be great on paper but to execute it to perfection is something government has to work hard on. Lets wait & see whats the next move & what it takes for market to stabilize.
Thanks For Reading.
September 14, 2017
September 14, 2017
Stories by Mayur Bhanushali