Wholesale markets in Chennai yet to recover from GST

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Chennai: Traders in Central Chennai dealing in wholesale markets of plywood, hardware, construction materials and household products complain that post-GST and demonetisation, their business is yet to pick up. The All India Manufacturers Association, which recently compiled inputs from micro companies based in Chennai, also expressed the opinion that the Chennai market is suffering due to the periodic tax revisions and revised charges imposed by the state and Centre.

“We were hoping for a revival in 2018 but the budget again was a disappointment for medium and small scale industries”, said K E Raghunathan, National president, All India Manufacturers Organisation. “While the government succeeded in its effort on GST, it has not passed the benefits to individuals and this had also affected the industries badly, he said. “The situation is the industries are in a state of stress and it’s like treating an ICU patient in General ward. Employment has reduced in Chennai due to tough measures affecting trade”, he said.

“The laws are getting stricter with I-T and tax filings and the overall market in business pockets of Chennai is affected. The companies based in Chennai are now focusing on tax payments and generating the bills during the first week. This had affected the cash flow during the first week of every month”, said Mahaveer Jain of Vepery, who is into parcel services.

The realty sector continues to be in the red. Issues like banning of sand and high tax imposition and ignoring the salaried class without tax exemptions are factors that would reduce the number of flat buyers in Chennai, said a member of Credai.

source-https://www.deccanchronicle.com (Feb 14, 2018, 1:43 am)

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