For S Athmanesan, a small scale automobile component manufacturer, the Goods and Services Tax has made money flow tougher. The companies he sells to, pay him only after 60 days but he must pay GST on their bills by the 20th of each month. That locks up about fifteen per cent of his monthly working capital which makes it tougher to pay salaries, buy supplies and so on. With a Rs. 50 lakh turnover he employs ten people, paying close to a lakh as salary every month.
