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  Life   More Features  02 Jul 2017  Taxing times for fash frat

Taxing times for fash frat

THE ASIAN AGE. | DIPTI
Published : Jul 2, 2017, 12:14 am IST
Updated : Jul 2, 2017, 12:15 am IST

The GST is definitely going to affect our business, just like demonetisation did: Kunal Anil Tanna

Still reeling from the impact of demonetisation, the fashion and beauty industry braces itself for the effect of GST on their business. Industry experts anticipate the implication of the tax reform on their sales.
 Still reeling from the impact of demonetisation, the fashion and beauty industry braces itself for the effect of GST on their business. Industry experts anticipate the implication of the tax reform on their sales.

Amy Billimoria,  designer
There’s a lot of chaos and confusion at the moment and we are trying to get ourselves educated about the whole new law. It’s going to hugely impact our sales. We were at a six percent VAT but luxury goods now come under the 28 percent, so it’s a huge hike. I just hope things settle soon.

Kunal Anil Tanna, designer
The GST is definitely going to affect our business, just like demonetisation did. But eventually everyone will get used to it. I trust our government and in the long run it will benefit everyone.

 

Gautam Gupta, designer
GST is a good step and I welcome it. In the short run it might cause some issues and discomfort but in the long run, it will be good. Percentage levied on designers could have been low as it’s a wrong perception that all designer wear is expensive. Sales will definitely go slow for a month.

Aashmeen Munjaal, makeup artist and beauty expert
One good thing about GST is that it brings uniformity. If I want to open a franchise in another city, another state, I’ll be able to do that smoothly because GST laws are applicable uniformly everywhere. Secondly, it brings a lot of transparency about service taxes. So while dealing with clients, we won’t have to explain too much. We may encounter hiccups in the beginning but I feel in the long run, it’s all good.  

 

Harsh Shah, co-founder, Fynd
We are expecting a reduction of rates due to the effect of Anti-Profiteering law on the rates of products which is speculated to go up. Also, the tax on discounting will bring all the E-Com players on the same ground where the companies will not be able to influence the customer by undue discounting of products. GST has definitely increased the compliance burden on the seller as well as the E-Com operator as the number of transactions are huge and tracking minute details of every transaction will be a challenging task.

Mansi Bhasin, Creative head, OLBEES
GST would enable a smoother input credit system which would shift the balance towards the organised sector. But for the long run GST will be helpful for sustainable and long term growth. Also, this industry will start getting more registered taxpayers under a well regulated system.

 

Samant Chauhan, designer
GST has impacted almost every industry and consumer. But it is expected to be positive in the long term. India has a large garment production base which is supported by an even larger domestic market. GST can play a central role in accelerating growth in the domestic market and making India become a player in the international markets.

Bharti Taneja, beauty entrepreneur
Beauty products and services may become a luxury, that’s what I fear the most. The tax has gone from 12 to 28 percent on goods and services. I feel people won’t be able to maintain a set budget. Also, beauty services are also hugely affected but with such raised tax rate, I think people are going to rethink their sessions of monthly pampering.

 

Tags: goods and services tax (gst), gst