Money & Banking
Banks Are Fleecing Their Customers
The one entity that we are supposed to trust with our hard-earned money is our bank. And, yet, in the past couple of months, you would have noticed newspapers headlines, WhatsApp messages and social media discussing how customers are robbed, hoodwinked or cheated by banks which have complete contempt for their largest stakeholders. The outpouring of public outrage ought to make the regulator and policy-makers sit up. But they have maintained an impervious silence. Public anger is concentrated mainly in three areas. 
 
First, the discrimination between old and new borrowers for home loans: the difference in interest charged by most lenders is over 1%. This translates to a substantial burden for borrowers. Many of them are young people in their 30s, who have often struggled to pay back an education loan before buying a house. The difference in amounts repaid will run into lakhs of rupees over the repayment period. Banks have got away with such shameful discrimination for nearly a decade, only because the Reserve Bank of India (RBI) and the government turned a blind eye. Ordinary people, already burdened with debt, cannot spare the time to fight. Worse, RBI is complicit in allowing banks to extract a charge from borrowers every time there is a drop in interest rates. 
 
The second big flashpoint for public anger is the decision to charge people for withdrawing their own money. These charges are hefty. Many banks plan to charge as much as Rs150 after every fourth or fifth withdrawal. The government’s studied silence over the anger spilling out on social media almost suggests a quiet deal to allow banks to recover their losses on the extra time and effort made during demonetisation. But it is deplorable that these charges will be imposed without any assessment of the situation on the ground. Consider this:
 
• Banks continue to run short of currency stocked in ATMs and cap withdrawals. So, a person planning to limit cash withdrawals to free ones will have to make repeated transactions because the bank will not dispense the amount required. This is especially true over weekends. At the very least, a charge on withdrawals must be preceded by a guarantee of unlimited cash available at ATMs and appropriate software that monitors when the bank fails to dispense the amount sought.
 
• Secondly, ATMs across the country continue to be out of cash. We have received dozens of complaints, even from city centres. RBI has not bothered to respond, or even acknowledge, that it is aware of the problem of continued cash shortage.  Our columnist, Dr Yerram Raju, has written a detailed account of the shocking situation in Hyderabad in our online edition.  
 
• Here is an eye-opening response to Dr Raju’s article, by a former deputy managing director of the State Bank of India (SBI). He says, “Non- or malfunctioning ATMs is an ailment affecting the entire network. It is not geography-specific. Though we are told that required changes to the hardware have been carried out, the factual status seems to be different. Supply or flow of currency to the branches is yet to happen. I am not sure who is misrepresenting facts—the RBI or the top management of the banks. At the granular level, the operating staff is faced with a challenge of taking care of customer service without adequate support in the context of currencies.”
 
• The situation at SBI, which levies the heftiest charges on customers also, prevails at all nationalised banks which account for over 45% of our banking system. RBI’s own study in 2016 showed that 30% of bank ATMs are non-functional (this was before the note-ban). This number would have increased substantially after the note-ban. In response to a Moneylife survey, angry customers told us that they were forced to use ATMs of private banks or go to the branch, because their own ATMs did not work. RBI ignored these complaints. 
 
• Two years ago, when complaints about bank charges had caused anger, Moneylife Foundation showed RBI officials the prototype of an app that would track non-functional ATMs through user-feedback and monitor action. RBI simply ignored our proposal. And, yet, it is sitting on over Rs3,500 crore of depositors’ money to be used for such services that it can itself initiate.
 
• Clearly, RBI and banks are betting on the fact that consumer anger will fizzle out and they will learn to live with the charges, as they have ever since banks began to increase charges in a cartelised fashion (SMS charges, debit card charges, non-home branch charges, etc). 
 
A third source of anger is the lack of any engagement by policy-makers—whether it is RBI or the finance ministry as owner of public sector banks (PSBs). It is almost as though the government has given a carte blanche to bankers to fleece depositors, not only through frivolous charges but also through the rampant mis-selling of insurance, structured derivative products (sold without explaining the risk) and mutual funds. The methods of cheating, especially for single-premium insurance policies, are now a template. Yet, banks, as well as the banking ombudsman, reject complaints outright. Most often, the targets are senior citizens, often people in their late 70s and 80s, who end up losing precious savings. 
 
On 18th March, Moneylife Foundation called a group of NGO activists and analysts to discuss bank charges and sent a joint memorandum to the RBI governor, Dr Urjit Patel, seeking action. These include: the Mumbai Grahak Panchayat, All India Bank Depositors Association, Consumer Voice, Citizen Consumer and Civic Action Group (CAG), Chennai, as well as leading financial writers including Dhirendra Kumar, founder of Value Research, Harsh Vardhan Roongta, founder of Apnapaisa.com, RN Bhaskar, editor and columnist, and others. More importantly, the mammoth All India Bank Employees Association (AIBEA) and the Central Bank Employees Association also supported the stand. This was followed up by an online petition which had attracted over 22,000 signatures in just five days. (Please sign the petition if you feel strongly about bank charges: https://www.change.org/p/governor-rbi-finance-ministry-stop-banks-fleecing-depositors).
 
Apart from the issues that I have already highlighted in previous columns regarding floating loans, unfair and one-sided agreements and the need to implement the consumer charter, the petition made a strong case for allowing seamless migration of bank accounts (along with all the standing instructions for direct debits to pay loan instalment, utility bills, investments, etc). Today, technology makes this feasible and it will ensure that banks fight to retain customers, rather than allow them to be exploited by cartelised charges. 
 
When policy-makers decided not to interfere with fixation of bank charges, they expected competition to keep a check on banks. However, payroll accounts and the needless bureaucracy around  account migration has tied down consumers and killed any semblance of competition. The memorandum also demanded that bank charges must be transparent. Dhirendra Kumar says that we entrust our money to banks for safe custody. They should not be allowed to debit any charges from our account, howsoever small, without explicit consent and two-step confirmation through an OTP system. 
 
Please notice that banks send you a text message for every transaction, and extract a quarterly charge for it; but these do not include debits by the banks for any late payment fees, interest, or account management charges of the type that HDFC Bank has been appropriating by stealth. The point is simple: Banks cannot take advantage of the fact that they have custody of our money, to debit any of it without our express sanction. 
 
Similarly, banks cannot, unilaterally, change the terms of their original loan agreement by holding borrowers to ransom and extracting charges from them to reduce interest. It makes a complete farce of the concept of ‘floating rates’. All these actions would be struck down as unconscionable if consumers are able to come together and go to court in a class action suit. 

 

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COMMENTS

Sandeepan Bose

3 months ago

In developed countries customers can not enter the bank without an appointment. It is very expensive to service a withdrawal slip at the bank counter.Banks used to work as a service to the nation when India was growing up. 60 years past independence, banks have not got past the service mode. Its time that branch managers are accountable for profitability and service failures. If the branch can not service the number of accounts bank managers should put their hands up and say sorry we can not service so many clients.

Ashwin Mehta

3 months ago

The public should initiate a movement, Which I termed as :KYB as Vs. KYC. KYB means "Know Your Bankers". If the banks are having the right to know their customers, the general public also should have the right to know their bankers. Non availibility of cash is a standard and regular feature now in Mumbai at various ATMs.

Rajesh G

3 months ago

In online scenario on march 31st a incident happened to many of the customers that certain private sector banks started blocking the RTGS payment sites stating Server issue in order to retain the customer base and avoid transfer of funds outside the bank network. The common of these banks were HDFC and Kotak. I was surprised when many of the these banks customers started telling the same story that server was hanged. This is another way of duping the customers on last day of financial year to avoid making transactions.

B. Yerram Raju

3 months ago

Now is the time for customers to get their due for what they transact with the banks. The rule book of ATMs say that a customer is entitled to draw Rs.40000 a day but to get the same he has to operate the mandated 3 times!! This would mean that the customer can draw his entitlement only once a month. Read ATM as At a Time a Month.
2. It is important that the ATM should dish out the following denominations in the percentage indicated against them: Rs.100-10%; Rs.500-40%; Rs.2000-50%. Any drawal less than Rs.1000 shall all be in Rs.100 denominations. The ATM slip should print this proportion as a commitment on the back of it and failure to adhere should auto credit the related customer account Rs.100/-.
3. Any bank branch delaying credit of cheque drawn on it within 24hours irrespective of holidays and failure to do so will attract a penalty on the bank with an auto credit to the account to the extent of Rs.100 for all cheques below Rs.10000 and Rs.300 for all cheques above Rs.10000/-.
4. If any bank delays crediting the proceeds of the cheque/bill sent for collection outside the city in which the account holder has the account, beyond 3 days, the bank shall pay interest at 3% of the amount of the bill akin to what they collect on the credit card dues beyond the due date. This will maintain parity between the bank and the customer.
These suggestions may be sent to the IBA and RBI by the Money Life if agreeable to all.

Abhijit Gosavi

3 months ago

Why is it that ATMs in the U.S. never run out of cash? It is possible that a very small proportion of the population in the U.S. actually withdraws cash. But the problems in India are more likely due to lack of professionalism in how banks are run, and they appear to be at the top. How else do you explain legitimate complaints falling on deaf ears? Indians need to become as professional as their top-class cricketers. Becoming professional means doing your work sincerely; it does not require a large number of degrees, nor should it require additional incentives. Once again, a brilliant and detailed piece of writing.

REPLY

B. Yerram Raju

In Reply to Abhijit Gosavi 3 months ago

I fully agree. The most efficient Imperial Bank of India had cashiers with Metric or SSLC as the qualification for recruitment. But they knew Banking through both practice and rigourous application of rules to lend credence to theory. Failure to honour a rule was punished.
Today, most staff operating on computers do not know banking and the officers behind the desks no better. Machine dictates and man obeys. Hence the highly qualified persons can talk more of derivatives and not the instrument behind the derivative. This is taking banking in India close to disaster that the double-digit growth targeted India can ill afford. bad banking and good economy cannot coexist. High time that the GoI and RBI wake up from the slumber and take remedial steps before they hit the hard rock.

David Rasquinha

3 months ago

Is there any data on how many customers withdraw cash more than 4 times from a branch or ATM? I wonder if this is such a problem as it is made out to be.

REPLY

B. Yerram Raju

In Reply to David Rasquinha 3 months ago

The data is available with the banks as they levy the penalty for the breach. Such data can be commissioned only by the RBI and not by a Consumer Forum or another agency.

Suketu Shah

3 months ago

The root cause of this is that our FM is a lawyer,not an economist.Plus his subordinates like Shaktikumar Das ,Arvind Subramanium,etc are PC's moles who want to spoil NaMo's names so they do nothing about such nonsense by banks.

c v manian

3 months ago

Please write to the MPs in your constituencies and ask them to talk to the Finance Ministry or take up the matter with RBI, so that the genuine concerns of the citizens can be addressed. For too long, RBI has taken the citizens for granted and it is time, that we wake up and hold our MPs accountable. Please don't sit tight. Get your MP's address from the Parliament website and write to them and follow up for actions taken.

B. Yerram Raju

3 months ago

Yes; a class suit seems imperative. Second, we are surprised to notice that when we ask for the deposit schemes for senior citizens, managers explain the insurance products and the Banks' mutual funds that get them higher returns. All senior citizens better be aware of the traps. Such off-beat products and mutual funds are sold because they fetch them commission while even if they do not achieve the deposit and credit budgets annually, they get their salaries. Top brass also has their corresponding share in the commissions and hence the annual budget performances do not worry them.

drsharmilaraopn

3 months ago

Thanks for the informative article, I shall check with my bank about relevant areas.

Deepak Narain

3 months ago

It is a dismal situation. I pray the RBI, Finance Minister and the PM to intervene and solve these problems.

MOHAN SIROYA

3 months ago

Thanks to Sucheta Dalal for spreading this public awareness about fleecing by banks and the Regulator RBI's covert consent of free hand to all the banks to do what they desire, taking the hapless depositors to ransom.
As for the ATMs less said the better. There are specific rules for allowing off site ATMs of the banks which are to be adhered as given in para 4 (1)(b) of the Master Circular on Branch Automization dated July 1 , 2014.. But these rules are merely on paper . In a place on Andheri Kurla Road, Marol Pipe line, there are five ATMs installed of different banks ,but except two ,none of the ATMs follow the rules as laid down for the safety of user's privacy and data. While three ATMs are not guarded by any watchman, one ATM installed by ICICI Bank is proving dangerous as it is installed in a shop in a corner of 2'x3' feet open space with no CCTV camera or any privacy of operation from the prying eyes of people walking in and out and marking person's transaction .This resulted in many leakages and inconvenience to the ATM users and they complained to our Consumer Complaints Cell. When we wrote to RBI , it just did not indicate any corrective action. When RBI was approached under RTI Act to reply as to what action is envisaged by the regulator for such unsafe, open road side ATMs, RBI's one department replied that "NO Action on record" whereas another department replied that " Information asked for does not fall under the definition of Information" and rejected application. First Appeal met with the similar summary disposal. Of course, we will go in second appeal to CCIC.
However, this sort of cavalier action on the part of RBI is a deliberate ploy to benefit banks without caring for its own statutory norms and safeguards in area of Consumer Protection. RBI moto seems to be "Transact Cashless at your own Peril "

Nifty, Sensex may give up some gains – Weekly closing report
We had mentioned in last week’s closing report that Nifty, Sensex might pause for breath. The major indices of the Indian stock markets closed with losses over the first three days of the week and made a small rally on Thursday.  On Friday, the market closed with small gains over Thursday’s close. Overall, for the whole week, the major indices closed with marginal losses. The trends of the major indices in the course of the week’s trading are given in the table below:
 
 
Indian equity markets ended lower on Monday after a three day rally as investors chose to book profits caused by the rally in the previous week. The key indices ended in the red as the software services exporters worried over strong rupee and a slowdown in business. Shares of IT companies plunged on reports that Cognizant may reduce at least 10,000 jobs, representing 5% of its total workforce, as the company looks to shift its focus from traditional IT services to digital. The rupee strengthened slightly to 65.4124/4150 per dollar, close to the near 17-month high of 65.2250 hit last week.
 
On Monday, the shares of Idea Cellular fell by 11% on the BSE after the announcement of the board approving the merger with Vodafone’s Indian operations, reversing the earlier gains of 14.25%. This decline was observed because the investors thought that the deal values the stock of the company were much lower than the current market price; the promoters however rejected the valuation rumours. Voadafone India would own 45.1% of the combined entity, the promoters of Idea would own 26% and the rest would be held by the public.
 
Indian equity markets slipped for the second consecutive trade session on Tuesday as selling pressure was witnessed in healthcare, banking and automobile stocks. The key indices traded in the red during the mid-afternoon trade session as investors booked profits. By the end of the day’s trading, bulls returned and the major indices ended flat. A strong rupee and broadly positive global cues aided the key indices to pare some losses and close the day on a flat note. On the NSE, there were 498 advances, 960 declines and 56 unchanged. On the BSE, there were 1,088 advances, 1,694 declines and 192 unchanged.
 
Titan Company Limited on Tuesday announced that it will integrate IBM Watson Customer Engagement solutions to serve as the backbone of its online platform, enabling the company to tailor online campaigns and increase its customer base. Titan aims to use IBM's platforms to drive visitors to its brand websites as well as footfall into its 1,500 retail stores and 10,000 multi-brand outlets located across India. Titan shares closed at Rs463.70, down 0.40% on the BSE.
 
State-run Bharat Sanchar Nigam Limited (BSNL) on Tuesday launched a plan that will provide 2GB data per day for Rs339 per month. "To compete with Jio and other private players, we have introduced the cheapest plan with a rental value of Rs 339 per month. Under this plan, the consumer will get 2GB per day," said Sanjiv Tyagi, General Manager, BSNL. "In a month, the consumer will get 30 GB data and 25 minutes free call per day. After consumption of 25 minutes a levy of 25 paisa per minute will be imposed," he added. The plan will be effective from April 1, 2017. The closely related state-run Mahanagar Telephone Nigam Limited’s shares closed at Rs24.15, down 3.01% on the BSE.
 
Indian equity markets slipped during the mid-afternoon trade session on Wednesday as negative global cues and selling pressure in automobile, consumer durables and banking stocks subdued investors' sentiments. Growing concerns over US President Donald Trump's ability to implement his economic policies spooked the global markets. The US stocks slipped over 1.14-1.83% on Tuesday, following which almost all major Asian indices traded deeply in the red early on Wednesday.  On the NSE, there were 400 advances, 1,070 declines and 56 unchanged. On the BSE, there were 970 advances, 1,837 declines and 195 unchanged.
 
On Wednesday, analysts reported that Coal India Ltd (CIL) was likely to end the current fiscal with a shortfall against its annual production target for 2016-17. They, however, predicted that the production and sales were expected to achieve "marginal growth" over the last fiscal. During 2016-17, the miner had set a target of producing 598.61 million tonnes (mt) of coal with an 11.11% growth over the 538.75 mt produced in 2015-16. Its sales were at 534.50 mt in the last fiscal. "Coal India is expected to end the year with an around 550 million tonnes of production, thereby missing the annual target by 40-50 million tonnes. The miner needs to produce about 90 million tonnes in March to touch even 570-578 million tonnes as envisaged by the Coal Ministry. This is quiet unlikely," said market analysts. So far, the average monthly production in the current fiscal was around 45 million tonnes, he said. "Production has been impacted due to lower dispatch. Higher production without growing dispatch will add more to inventories and off-take growth till February was around 1.6% and I don't think it would change significantly in March," he said. CIL shares closed at Rs292.15, up 0.14% on the NSE.
 
Positive global cues, coupled with a marginally strong rupee and buying in automobile, oil and gas, and capital goods stocks lifted the Indian equity markets on Thursday. The key indices traded in the green during the mid-afternoon trade session on the back of short covering -- breaking the streak of three consecutive sessions of losses. On the NSE, there were 1,059 advances, 563 declines and 304 unchanged.  On the BSE, there were 1,687 advances, 1,112 declines and 204 unchanged.
 
The CNX Nifty, which opened on a firm note on Thursday, tracking positive global cues, traded with firm sentiments due to short covering. Bearish USD/INR futures prices also supported the recovery of the Indian equity markets.  IT (information technology), banking, pharma, auto, oil-gas and textile stocks traded in the green due to short covering, while media-entertainment and telecom sector stocks also traded with firm sentiments due to continuous buying support, according to market analysts.
 
On Friday, the key Indian equity market indices opened in the green following mixed global cues. Through the day, the major indices were range-bound and closed with small gains over Thursday’s close.  Trading was with gains for the second consecutive session on Friday on the back of broadly positive Asian indices, foreign funds' inflows and buying witnessed in banking stocks. After more than seven decades in existence and often referred to as Kerala's own bank, the State Bank of Travancore (SBT) would on March 31 go into oblivion. From the new fiscal, the bank would be merged with the State Bank of India (SBI). In all, 400 branches of SBT would be physically closed down. SBI shares closed at Rs276.05, up 2.81% on the BSE. On the NSE, there were 683 advances, 690 declines and 74 unchanged. On the BSE, there were 1,345 advances, 1,474 declines and 216 unchanged.
 

 

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How GST will affect small businesses
“Small business isn’t for the faint of heart. It’s for the brave, the patient and the persistent”
 
Small business will witness a complete transformation of the taxation system once the goods and service tax (GST) (https://www.gst.gov.in/) comes into effect. The proposed system shall be more transparent, more paperless, but requires more compliance as well. On an average there would be additional 36 returns per year to be filed on a single registration. Hence, the small taxable person should be taken care of, to avoid unnecessary burden on him.
 
There is no such term as ‘small taxable person’ under the GST law. We have given the name to the category of persons who had a turnover of less than Rs50 lakh in the preceding financial year. 
In this article, we shall discuss the possible exemptions and remedies available to the small taxable person and also the complexities involved in the procedure.
 
Small Taxable Person
As per the exemption and remedies available, we can categorise the small taxable persons into two divisions;
1. Those having turnover of up to Rs20 lakh (already covered under basic exemption limit)
2. Those with a turnover up to Rs50 lakh (remedy available in the form of composition levy)
 
Person having turnover up to Rs20 lakh
1. The law itself grants the basic exemption of Rs20 lakh to the small taxable person. Every supplier shall not be liable to GST if his aggregate turnover in a financial year does not exceed Rs20 lakh.
2. However, if the supplier is in the states of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand, then the exemption will be available only if the aggregate turnover in a financial year does not exceed Rs20 lakh.
3. Aggregate turnover here means the aggregate value of all taxable supplies, exempt supplies, exports of goods and/or services and inter-state supplies of a person having the same permanent account number (PAN), to be computed on all India basis and excludes taxes, if any, charged under the Central Goods and Services Tax (CGST) Act, State GST (SGST) Act and the Integrated GST (IGST) Act.
 
Let us understand this by way of example:
 
Example No.1: Calculate aggregate turnover and state whether the person is liable for GST exemption
 
 
Aggregate turnover in terms of clause (6) of section 2 is (Rs14+ Rs9 + Rs4) is Rs27 lakh. The turnover is more than Rs20 lakh, hence not liable for GST exemption.
 
Example No.2: Calculate aggregate turnover and state whether person is liable for GST exemption
 
 
No, person shall be not eligible for the basic exemption. 
 
Important question
 
The definition of aggregate turnover only includes taxable supplies, exempt supplies, exports of goods and/or services and inter-State supplies. However, it nowhere mentions non-taxable supplies. Hence, the turnover, as per the definition, will be Rs13 lakh (Rs9 lakh+ Rs4 lakh). Hence, is he eligible for the exemption?
 
The answer is no. The non-taxable supplies shall also be added in the aggregate turnover. This is due to the definition of exempt supply. Exempt supply means supply of any goods and/or services which are not taxable under this Act and includes such supply of goods and/or services which attract nil rate of tax or which may be exempt from tax. 
 
Hence, if we could create a proper link and are able to understand the law, then non-taxable supplies shall also be included.
 
Person having turnover up to Rs50 lakh (Remedy available in the form of composition levy)
 
1. Any registered taxable person can opt for the composition levy if the aggregate turnover in the previous financial year does not exceed Rs50 lakh.
 
2. The officer may permit the registered taxable person to pay tax under composition levy with some conditions.
 
3. The minimum tax payable under composition levy shall be;
- 2.5% of the total revenue, in case of manufacturer;
- 1% in any other case.
 
Let us analyse some of the cases that may be possible under composition levy.
 
Example 1: A person is registered under four states, with the following aggregate turnover in the current year:
 
 
Check the applicability of composition levy.
 
The combined aggregate turnover of all the above states is Rs54 lakh. As per law, the composition levy will be available till the person crosses Rs50 lakh mark. After this, the composition levy will discontinue and normal provision will be applied.
 
The reason behind the availability of composition levy is that Rs54 lakh is the turnover of the current year and not of the previous year. We have assumed that the turnover of previous financial year is less than Rs50 lakh.
 
Example 2: A person is registered under four states, with the following aggregate turnover in the previous financial year:
 
 
Check whether composition levy is applicable.
 
As per the definition of aggregate turnover, we have to check the turnover cumulatively and not state-wise. The total aggregate turnover is Rs144 lakh, which is more than the Rs50 lakh benchmark, and hence the liable person is not eligible for the composition levy.
 
 
Composition levy is not available in certain cases
 
The composition levy is not available under certain cases where the taxable person:
 
- Is engaged in the supply of services; 
 
- Supplies goods on which tax is not leviable under this Act; 
 
- Makes any inter-State outward supplies of goods; 
 
- Supplies goods through an electronic commerce operator and who is required to collect tax at source under section 56; 
 
- Is a manufacturer of such goods as may be notified on the recommendation of the Council.
 
 
This article has very important concepts for the small taxable person, which shall include small general stores at well. Hence, it should be understood clearly, because even a small mistake can lead to severe penalties. 
 
GST is the biggest reform to date. Hence people should be prepared nationwide to accept this change.
 
(CA Paras Mehra is an expert in taxation, including GST, and is also professionally associated with Hubco.in, a website to register and file GST in India.)
 

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COMMENTS

joseph Antony

23 hours ago

If an existing trader or a manufacturer already migrated to gst registration below turnover 20 lakhs per year...How gets tax exemption? What he should to do for the exemption from tax as a registered business?

Abhishek kapri

4 days ago

Actually i want to know that how a manufacturer (without registered company) is affected by GST bill ?
like:1) He has to register a company name?
2) Those non-taxable goods comes in picture?
How he will able to manage his competitor?
Please answer asap.
Thank you

Mr Jitendra

2 weeks ago

In last 15-20 days, the most people cribbing about GST is the small retail shops and restaurants in villages. They say how are we suppose to file 3 to 4 GST returns per month on a fixed date? Where is the infrastructure? Most villages in April, May, June lack electricity for 5 to 7 hours every day. How are they suppose to keep computerised sale statements and receipts? The very supporters of the 2014 government are now gone against it. Most small shops and retailers dont want GST to come to them as they are not educated on it nor they want the education. Some are saying, Govt must do the infrastructure setup of each restaurant and shop.

Sabarish T S

2 weeks ago

Nice article. I have 2 questions can someone please explain Question 1: If aggregate turnover is less than 20 lakhs should we still go to GST portal and declare something. If yes what needs to be declared and what documents are needed? Question 2: If the aggregate turnover exceeds 20 lakhs and say this becomes 22 lakhs. Then should we pay GST on (22- 20)=2 lakhs OR on the entire 22 lakhs?

priya arumugam

3 weeks ago

What effect does gst have on business of turnover less than 20 lakhs? What is that basic exemption?

Nanshiya Rao

4 weeks ago

GST going to kill small industries

R Balakrishnan

3 months ago

Why is this thing so complicated? To provide a livelihood for 'experts'? and to terrorise the small businessman?

REPLY

Mr Jitendra

In Reply to R Balakrishnan 2 weeks ago

Even I did not find the provisions attractive. Its nonsensical to file 3 to 4 returns every month. There maybe 37 GST returns if I am not wrong. What if some trader goes for 2 months pilgrimage? Who is going to file his returns? Will be turn defaulter? Complete junk. Since the mall business is not doing well since last few years, the government seems to finish off several small fish in one GST stroke so that the large fish can survive. They have not thought about the small businesses.

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