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Clueless traders, customers yet to feel GST effect

Day 1 of the rollout of the Goods and Services Tax (GST), touted as a game-changing economic reform, saw little…

Clueless traders, customers yet to feel GST effect

(Photo: AFP)

Day 1 of the rollout of the Goods and Services Tax (GST), touted as a game-changing economic reform, saw little effect in the Capital’s markets. Shopkeepers felt the prices of essential commodities, fruits, vegetables, and medicines will remain the same for at least a fortnight.

"There is total confusion regarding the billing of the items in GST. I have almost all slabs of commodities. But do not know how to rate them according to GST. I asked my chartered accountant to rate prices according to the new tax regime, but he also does not know," said Anuj Gupta, who owns a grocery shop.

"Companies have ordered us to sell the garments at the same rate at present. After some time, they will inform us what to do," said Suraj Singh, who has a garment shop in Maharani Bagh. He said he had heard that the government will launch user-friendly software for billing the items.

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The customers were also confused over the duty structure under the GST regime. "I think, the wholesalers, traders and shopkeepers among others are confused over GST as most of them don't have any knowledge of GST levies on different goods," said Dhananjay Sinha, who runs a restaurant, adding that he is also confused over the new tax structure.

Many vegetable sellers were clueless about GST. It was obvious that they had not heard of it before.

"We are selling the vegetables with the same rate as earlier. We bought them from the mandi at the same price too," said a group of vegetable sellers.

On being asked about any change in prices of medicines and cosmetics, a pharmacist in Lajpat Nagar said, "For now we have not seen any change. Slowly it will come in the process and be applicable."

Big Bazaar, the retail chain, offered discounts ranging from 2 to 22 per cent on select food and grocery items. The retailer announced a sale starting at midnight last night for two hours with new prices.

According to an executive at the retail store, "Last night, stores across the country were shut for two-and-a- half hours from 9.30 p.m. to midnight to upgrade the new software and billing system."

GST is an indirect tax applicable throughout the country which replaced multiple cascading taxes levied by the Central and state governments.

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