The wedding season is here. And the cooler months also see a lot more events. But, like at this time last year, everyone isn’t celebrating.
Neale Murray, of events major Fountainhead, says that there were troubles last year, mainly because of difficulty in paying vendors. But, he says, that the GST effect is a larger one. Large companies who hire event planners have cut back, especially those selling consumer goods, as their sales have gone down due to GST-related price increases. “Demonetisation had a larger effect on Indian weddings, as lot of transaction is done by cash.”
Event and wedding planners are finding it tough going, says Ravi Prakash, of Real Events and Entertainment, as their trade has traditionally used a lot of labour and services are paid for in cash. “Demonetisation led to increase in competition for our business. Also, customers who once would spend a great amount on weddings have now started budgeting, and the money which comes in our hand is less than for the services we provide.” GST has sent prices up, he says, and since there are not enough assignments, he has told his workers that they can supplement their income with jobs for other contractors.
Jayesh Shah, owner of The Wedding House does not agree: “Business is almost normal. Initially, we faced problems, but now clients are walking in with the same plans they had before. There is no great GST effect, as the is gap is only of 3%, which can be absorbed by clients.”
