No balm for trading community hurt by note ban, GST

Leaders of trading community in the state are hurt as the annual budget for the fiscal 2018-19 has offered nothing to them, even if they were the worst hit because of demonetization and Goods and Services Tax (GST).

Leaders say that traditional traders play a critical role in providing employment to masses, especially in small cities and towns. However, the segment has been totally neglected in the budget.

"The traders of handicraft and textile are the worst hit. The budget has nothing to offer to them. Those who suffered collateral damage should be given loans and financial incentives to bring them on track. However, no such announcement has been made," said Jayendra Tanna, vice president of Gujarat Chamber of Commerce and Industry (GCCI).

He also disagreed to the comparison between salaried class and businessmen in the budget in terms of their average tax payout. Finance Minister Arun Jaitley has said that the average tax payout of businessmen and professionals is about one-third of that of salaried class. "Businessmen, many of them less educated, invests money, takes risks, employs people. While the salaried class is well educated and is not providing employment. This not an apple to apple comparison," said Tanna.

Gaurang Bhagat, president of Maskati Kapad Mahajan, one of Ahmedabad's oldest trade bodies, had expected that there would be some course correction in GST like abolishing Integrated GST (IGST) on the import of machines between July 1, 2017, and October 13, 2017. The government had then imposed 18% IGST on machines, which was withdrawn on October 13. However, for 105 days in between, the businessmen have to pay GST. While they are supposed to get set off of the tax, no such thing has happened. He is also angered by the way e-Way Bill was brought in. The government had to withdraw the motion on the first day of the launch. "Transporters were not picking parcels for four days. Financial health or traders is deteriorating. If the corrective actions are not taken, there will be a grave impact on the economy," Bhagat told DNA.

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“If proper consultation was done, this could have been avoided. Doing business in increasingly become more complicated in the country,” said Gandhi, also the chairman of Food Committee of GCCI.