Thread by @iam_anandv

As a small biz, we anticipated this stupidity months ago and reworked our entire supply chain by withholding payment to the tune of 30% for vendors on our supply chain till they file their returns.

Needless to say, many went out of business.

economictimes.indiatimes.com/small-biz/gst/…

Remember that the govt *allows quarterly filing* of GSTR-1. This means that we can't claim Credit until the quarterly GSTR-1 is filed by the counter party, even though goods has been paid for, delivered and transaction is complete.

Now the impact of this move is devastating.

To the quarterly filers of course. Because even though they may be regular filers, the other party can't take credit. The cash flow implications for everyone in the chain will be -ve, except for the govt.

That is the whole intent here.

If everyone's cash flow is impacted on a turbulent economy across the entire supply chain, what really will happen to the GDP and the taxes?

Would it not contract? Can someone please tell this to any economist in the govt?

Oh, I forgot. There is none there. It is just Pandey-ji running revenue department just like how he ran #Aadhaar. Make up the rules as things move -ve.

I am mind blown about how much of a destruction GST is to businesses are. Simply mind blown.

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