Confusion reigns in Noida over GST effect on goods, services
Owners of small eateries said they are happy with the introduction of GST as their profits have gone up, while owners of sit-and-dine air-conditioned restaurants will charge more to cover the deficit. However, owners of other stores and services were unable to provide a clear picture of GST impact on their business.noida Updated: Jul 01, 2017 22:56 IST
Day One of the Goods and Services Tax (GST) rollout spelt confusion for residents and shopkeepers in Noida. Most people said they will have to wait and watch to assess the impact of GST.
Owners of small eateries said they are happy with the introduction of GST as their profits have gone up, while owners of sit-and-dine air-conditioned restaurants will charge more to cover the deficit. However, owners of other stores and services were unable to provide a clear picture of GST impact on their business.
Shops selling electronic goods are expecting the prices of their goods to increase. “Customers are just coming to check if the prices have gone up or down. There is a lot of confusion among people about the impact of GST. We managed to sell a few items by the afternoon but today, most people are just visiting to assess the price difference,” said Ashish Sharma, owner of Sangam electronics store in Sector 18.
Manager of Fusion Zone ready-made garments, Ravikant Rathore, said that the GST will affect the business community adversely. “I am not sure if it’s going to help us. If the prices go up, the number of customers will go down. We will have to wait and watch if it will help us in the long term,” said Rathore.
People are hoping for costs to reduce in the future. “We bought an air cooler and we are not worried about GST. We will have to pay a bit more but we are hoping that we will be benefitted in the future. We initially considered checking the prices but then decided to go ahead and pay the charges,” said Rohit Kumar of Sector 45.
Outlets with online processing system faced problems while providing bills, due to technical issues pertaining to the formalities required for GST. “GST will not affect our product much, but we are facing trouble in producing online bills because ours is a centralised system. There are few glitches and we are working on resolving those,” said Akash Mathur, manager, Organic India in Sector 18.
The owner of Goli vada pav, a small eatery, welcomed the move as the cost of their products will go down by 2.5%. “Non-AC outlets such as ours will not be affected much; in fact, our prices have gone down a bit. Customers will be happy that they will have to pay less,” said Rohan Mehra, owner of Goli vada pav.
Even an evening before the introduction of tax reforms, Noida-based traders claimed that there was a general lack of awareness among the business community with regard to how their products would be affected by GST. They had demanded better clarity from the Union government.
“Businessmen are confused over the various clauses of the GST. They want to specifically understand the tax deduction procedure for their businesses. For example, a restaurant owner wants to know how much tax he/she will have to pay, with and without alcohol. The government should provide sanctioned bills according to their businesses and make them understand the bill sanctioning,” SK Jain, chairman, Federation of Industrialist Traders and Jewellers Association, said.
First Published: Jul 01, 2017 22:31 IST