SRINAGAR: In the afternoon “discussion” on GST with the media persons, Finance Minister Dr Haseeb Drabu foresaw a “wholesale chaos” for a few months because the new tax regime is a major “policy disruption” that intends to change the business is transacted in India. He anticipation serious crisis for the state, he leads in the GST Council, in case J&K does not join the new tax regime that state’s main rather only market is adopting.
But Drabu is perhaps unaware e that in J&K chaos has already set in, even at a time when the coalition government is still “evolving a consensus” to avoid “hush hush extension” of the new tax system. Major FMCG players are facing severe crises as they will be running short of supplies in the very first week of July. GST is being rolled out across India by midnight of last day of June, excepting J&K.
“Nobody understands our problem,” a senior executive of a major MNC told this correspondent. “There has been no billing across India from our offices since June 21 because we wanted to exhaust the stocks in all states so that new systems are implemented and started on July 1.” The executive talked on the condition that he is not quoted because he is not authorised to talk.
This was done under the presumption that all the states in India will have a single tax system from July 1. “All the MNCs in India had already created the billing software that adopts the GST system and it is currently being tested in all the companies,” the executive said. “We also got the new SAP patches but we are unable to understand how to manage a state where things have not changed, not till date.”
MNC like ITC, Britannia, Hindustan Unilever Ltd, Nestle, GPI, PNG, Narico, Recket Bankizer and many others are the major players in India’s FMCG. They all are facing the same problem. “We lack experience to manage a system in which we buy from one market and sell in another market having two different tax systems,” the executive explained. “In absence of GST we may not be able to get the input tax to the suppliers we work with. So what to do?”