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In Gurgaon, Sadar Bazar traders give mixed response to GST

Branded stores have been able to make the transition, but small retailers have not fully migrated to the new GST system yet

gurgaon Updated: Jul 01, 2017 23:30 IST
Abhishek Behl
Abhishek Behl
Hindustan Times
Gurgaon,Gurugram,Sadar Bazar
A large number of shops selling fabrics and branded clothes in Sadar Bazar offered almost 30% to 40% discount on their goods. The new tax to be imposed on the sector is yet to be decided, a seller said.(Rahul Grover/HT Photo)

Traders in Gurgaon’s wholesale and retail hub of Sadar Bazar gave a mixed response to the introduction of Goods and Services Tax (GST), which was implemented across the country from Saturday.

Most of the large traders and retailers issued receipts and bills as per the new provisions of the GST, but a number of small traders issued temporary bills saying that their billing software had not been updated yet. Traders admitted that more time was needed to implement the changes and completely absorb the new taxation system.

Problems were faced mostly by small retailers who do not have large systems or support staff to manage the account books. However, branded showrooms, restaurants and major hair cutting saloons included GST in their bills.

Customers visiting such establishments also shared their first bills with the new tax on social media. Many who visited saloons had to pay more as the earlier tax of 15% on their services went up to 18% under the GST regime.

Among the other businesses affected were sellers of electronic items, clothes shops, grocery stores and bakers.

In most of the shops selling electronic items, customers were given temporary bills on Saturday with the promise that they would be reimbursed if the GST amount computed was lesser than the tax charged

from them at the time of purchase. Lakhbir Singh, owner, Bhajan Electronics, said they are in the process of updating their system, which will take some time.

Among others who issued temporary bills were most of the bakers in Sadar Bazar and adjoining colonies. They refrained from issuing proper bills as their systems had not been updated yet. Meanwhile, the city’s grocery shops on Saturday sold their products at the maximum retail price (MRP), citing the new tax as the reason they could not offer any discount.“Earlier, customers could be given a rebate of 8% to 10%, but under the new tax regime it is not possible to offer that,” said Pravin Gupta, a grocery trader in the city.

Medicine shop owners too had something similar to say. They said GST will impact their business, not buyers, “Customers may not be able to get rebates from individual shops as they did earlier,” said Rajesh Kumar, owner of a medical shop.

However, spelling good news for shoppers, a large number of shops selling fabrics and branded clothes in Sadar Bazar offered almost 30% to 40% discount on their goods.

Vijay Jain, owner of a clothes shop, said the tax to be imposed on this sector is yet to decided. “We are keeping all the records and maintaining the data as required by the authorities,” he added.

Among sources of entertainment, while the tax rate on movie tickets has gone down nationwide under GST, in Gurgaon the price of tickets has not come down.

Movie goers complained that the tax benefit should be passed on to them as ticket prices in Gurgaon are quite high.

First Published: Jul 01, 2017 23:30 IST