GST: Medicine shops down shutters

KOLKATA: Scores of medicine shops remained shut on Monday to complete their GST-complying back-end formalities, leading to a sudden shortage of drugs in certain pockets of the city. At least a fourth of retailers chose to suspend their business to evaluate their existing stocks and upgrade their software.

According to the

Bengal Chemists

’ and Druggists’ Association, it could take three-four days for big retailers to complete the job.

Even though drug prices will not change till September, the new tax pattern must be reflected in the bill. Also, retailers are now required to file tax returns every month, for which they must quantify their stocks. Previously, big retailers checked their stock once a year while scores of smaller ones rarely did the job.

“But now, the laws have got stringent and every retailer must update their records. First, they need to declare their stock and, more importantly, upgrade the software. Every medicine now has an HSN code, which will eventually be necessary to enlist post-GST prices. It must be uploaded onto retailers’ computers to make sure that they are not caught off-guard once the new prices take effect,” said

Sadhan Ghosh

,

general secretary

of the association.

The shutdown, which came without a prior warning, left many in the lurch. Siddhartha Ray of Tollygunge was stumped when he found a drug store in New Alipore shut on Monday morning. He had ordered a particular medicine that was to be delivered to him. “They didn’t even tell me that the shop will remain closed. I will be in trouble if I don’t get the medicine in a day or two,” he said.

The buyers’ inconvenience could not be helped since retailers needed time to make the switchover, said Tarun Roy, a retail store owner-cum-distributor. “It’s a time-consuming job, especially for those who did not maintain computerized records so far. First, the HSN code has to be uploaded for every drug. Second, every medicine now has to be accounted for. Those holding a fairly big stock have a task on their hands. So far, they could afford to do a sketchy job with the help of a chartered accountant. But now, they need the support of multiple accountants with a fair knowledge of computers,” said Roy. Retail chains like Frank Ross and Blue Print, however, remained open.

Some big retailers like Ramkrishna Medical Stores near Lake Market were contemplating a shutdown. “We might have to close soon to upgrade our software,” said

Ramkrishna Jana

, owner.

Hundreds of small retailers were left scampering to arrange for computers for stocktaking. Many have hired computers and appointed temporary staff for the job. It could still take them two-three days, felt a retailer. “Mine is a small business, but now I must change my billing pattern. Also, stocks must be appropriately recorded for I need to file my return early next month. The whole thing is costing me quite a bit. Coupled with that, I am losing money since my shop will have to be shut for at least four days this week,” said the retailer.

With supply of drugs remaining slow, a crisis is not being ruled out. “Many more will have to down shutters for the job. It will cause inconvenience to customers, but at least all retail stores are not shutting down together. More than the stocktaking break, we are worried about the supply from distributors remaining slow,” said Ghosh.