New GSTN imbroglio...

The Central Government has passed an order where GSTN is now open to scrutiny under PMLA by ED in the country. The idea of doing this to curtail the misuse of the provisions made under GST to gain access to liquid cash available in the open market. The traders, small shop keepers often take unsecured loans in the open market from unregistered loaners, big merchants, suppliers and micro finance entities however they are now under threat to use these loans to sustain their livelihoods as they will be under scanner of IT and ED departments henceforth. The big suppliers, dealers and manufacturers will now not supply products on credit to these small traders and shopkeepers thereby reduce the trading done by these small vendors. This is to scale down the small market dealings in the future course of businesses.

The time to review ( if any )  to  this change in rules of GSTN may overlap with the upcoming elections in both States and Central level Governments ,w by the time  these small businesses would have either suffered losses or closed down due to this scare in the market today.

This is another kind of notebandi for small traders which will encourage online marketers and Big Malls to extend their businesses far beyond these small shops surviving with the society in the country. Many youth will be unemployed and seniors moving out of this Sector in the coming time. It would be wise to encourage small and medium scale industries to flourish in the market instead of spreading fear psychosis among the small traders. 

Governments should devise other methods to check money laundering in the open markets in India.

#notebandi 

#moneylaundering

#GSTN #IT #taxes