Taxing times for fash frat
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.
Satkrit Krishna, designer
I have a neutral approch towards GST — it has it’s own set of positives and negatives. It seems to have added transparency to the whole system ad especially in the case of recieving payments. Also, a single tax makes it cheaper to outsource work to other states. We have to wait to see what the long-term effects are. Personally, I still find it confusing as to which slab my products fall into, and will take quite a few days to figure that out.
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.
— Compiled by Dipti and Niveda Manohar