Technology crises affect trade in India’s largest wholesale market

Technology crises affect trade in India’s largest wholesale market

Post Good and Service Tax (GST) regime implementation, the Delhi traders on the first day faced loads of issues related to hardware and software. The tax law has been introduced but the required system isn’t in place to comply the new course of action, which led to huge confusion among the traders in the largest wholesale market of Delhi, Sadar Bazaar. The effect also comprises the severe drop in the business.

A large number of traders that have more than 50,000 shops on the congested and narrow streets were seen following the conventional method of manual issuing of bills.

Technology crises affect trade in India’s largest wholesale market

Rakesh Kumar Yadav, President of Sadar Bazaar Traders Association, said, “The issues are multifaceted. A large number of traders do not have computers to install the new software and create bills. We had to keep the market closed yesterday and the majority of them even kept the shops shut on subsequent day. When the Standard team came for a visit on Saturday, traders mentioned about the negative part of the GST regime on their business.”

“The software that is compliant to GST was introduced into the market on June 26, 2017. There are approximately lakhs of traders and businessmen in the city. How is it feasible to install it everywhere in such short span? The old bill formats are completely different from the current structure since the availability of updated bill books is scarce due to high demand as the printing operations take time,” said Yadav.

While talking to a sanitary and hardware trader, it was noted that there was some distressed among them. Baldev Gupta one of them stated that we aren’t against the GST but there are some serious concerns we have been facing very severely in terms of business. 28% Good and Service Tax on hardware is absolutely groundless.

A number of customers are showing unwillingness on paying the augmented tax rate under the GST. The ratio of the people who wanted to shop without bill was also high, and the reason was the higher tax slab of 28% on the products.

The implementation of the new tax system will certainly have its own pros and cons, but after balancing the tax system it seems that the overall arrangement has been done from the consumer perspective.