Watch Market Review
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Hours & Minutes

Luminox Advt.
Our Vision - October 2017

Time and Tide



Today, we live in a volatile market. Jatinder Nagpal from D’Signer Watches talks about the current horological scene…

How has the GST affected the business in the short term?

For a short while the environment was negative as there was a lot of confusion with regards to the previous VAT paid stocks, the retailers margin, the number of returns to be filed every month etc.

What do you think would be the long term impact of the GST?

The longer term impact is 100% positive as we feel that now we are going to deal with one kind of a tax and a single department. In other words there will be no CST (which was 2%), no haste of collecting C forms, no octroi which was only in Maharashtra basically, and no need to deal with various departments. Also, almost all of the system is online and not dealing physically with departments which will further reduce corruptions and delays.

Has your view about GST changed post-implementation?

Post GST our view is that things are still slow because people are taking time in understanding and adopting to GST. Eventually this will streamline systems. It is all positive except that we feel that if GST is capped at 18% it will be good for the growth of the entire industry.

One major impact of the GST system of NO DUTY ON WATCH MRP has diverted complete focus of customers to direct import of complete watches. The whole concept of Made In India is going for a toss as the duties on importing watches or components is 10%. Hence, this affects the industry. It could affect manufacturing. With this effect the MADE IN INDIA purpose stands lost. All factories producing watch components are completely discouraged with the diversion again moving towards imports. This is a serious concern for the industry.

The complete interview is in Hours & Minutes on pg no. 8 in the October 2017 edition.