1. GST impact: Confused about the new tax rates, many refrain from doing business

GST impact: Confused about the new tax rates, many refrain from doing business

After the countrywide launch of the Goods and Services Tax (GST) on Friday midnight, many businessmen in Delhi-NCR on Saturday seemed confused about the new indirect tax regime, with some even refraining from buying and selling any products.

By: | New Delhi | Published: July 1, 2017 9:42 PM
Goods and Services Tax, GST impact, GST, GST launch, GST rollout, GST launch in India, Narendra Modi, Amit Shah, Arun Jaitley, BJP, NDA government, UPA government, Congress, new tax regime, new tax policy However, there were some who found different ways of generating bills, while a number of businesses with updated software generated bills with GST levied on their products.(Reuters)

After the countrywide launch of the Goods and Services Tax (GST) on Friday midnight, many businessmen in Delhi-NCR on Saturday seemed confused about the new indirect tax regime, with some even refraining from buying and selling any products. However, there were some who found different ways of generating bills, while a number of businesses with updated software generated bills with GST levied on their products. Some eateries were seen handing out bills displaying state GST as well as central GST applied on the sale. Noida’s Kay Dee Electronics Manager Naresh did not sell any product on the first day of the new tax regime, saying there was no clarity on its imposition.

“We are waiting for the complete information from the GST Council about levying of the taxes. Only after receiving it, we will resume our business. There’s a lot of confusion about the rates,” Naresh told IANS. Similar was the condition of several other shopkeepers. They also waited to have some clarity to be able to go ahead with the transactions. “Very few customers have been visiting us, but they are also being sent back as we haven’t been able to understand the new law as of now,” said Anand Kumar from a handloom emporium.

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“We will resume as soon as we get a clearer picture about it,” he said. Kumar expressed disappointment and questioned the government’s “hasty move” of implementing the policy. “Why so much hurry to implement this policy, which is not clear to the majority in the country?” he said. On the other hand, there were proprietors using the cash memo and providing hand written bills after levying GST.

When asked if they had complete knowledge of the GST regime, a shopkeeper of CS Electric Company here said that the information available online was helping him make bills. “We are reading about the GST rates online to be able to make invoices,” 45-year-old Ram Gyan Mahto said. Raymond Manager Pawan Aggrawal told IANS: “We are not generating bills right now. Customers have been taken into trust that they would receive bills on mail once our system is updated.”

“Those not comfortable with mails have given us their phone numbers, so they can come and collect it later,” the 51-year-old said. Aggrawal appreciated the new tax system, saying: “It will remove the variation of prices that existed. Now onwards, there will be just one tax on everything all over the country,” he said. A Firefox bicycles outlet has promised its customers to send bills later through WhatsApp, mail and other options, as they are also waiting for the software on their systems to be updated.

Many eateries and restaurants said that they had updated the system soon after the launch of GST and were comfortably generating invoices for the customers. “We had updated the software before 8 a.m. today (Saturday) as people usually start rushing in early in the morning,” Kamlesh Jha from Bikanerwala told IANS. Aggarwal Bikaneri’s Palwal Kumar said: “We were aware that there is going to be a tax of 12 per cent on snacks and 5 per cent on sweets. We were prepared to follow the new system.”

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