Market condition after GST implementation

What will happen after GST implementation from 1st July. The market will be low like demonstration?

GST is positive for markets. It is already priced in.

Any hiccups in implementing may create temporary troubles for some companies.

As per news Banks not yet prepared. They need to register in every state. Many small companies are complacent as of now. Some are even believing it may be postponed.

As per GST rules companies need more cash flow because they need to pay taxes promptly else their customers may not like them, this creates more trouble for companies who are facing cash flow problems. On positive side this cash flow demand will improve Banks credit growth due increase in demand for Working Capital on companies.

Companies who already in trouble and not able to pay loans will not be able to get fresh working capital and they will under more trouble.

Look at companies who are currently default on loans and go short on them.

Many companies use tax amount as working capital and delay the Payment to Govt. Those are the companies which will vanish soon under GST.

As far as tax rates are concerned it is almost neutral to most items. About 2% drop in prices will happen in several items. This will reduce inflation and increase money flow.

Govt still not finished several rules about movement of goods and it’s forms. Only after this software can be updated. Needs to see how govt does end of this month

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Very informative…

LOL! :joy: I am still laughing!