Business News

GST Relief Not Reflected At Ground Level

Kurnool: The directions from the Centre to implement the new GST rules and keep display boards in every shop with revised and old prices have fallen on deaf ears. Traders in the Kurnool and Nandyal districts are openly flouting the rules and not effecting the promised price reductions for most items. In many shops, there are no boards and traders continue to sell goods at old prices, claiming that they are "clearing the old stock" purchased under the previous tax rates. There is no visible relief to the consumers, even though the new rules came into effect a week ago, on Sept 22. As part of GST 2.0 reforms, the central government reduced tax rates on several categories of products, with a claim that this would ease the burden on common people on the eve of the festival season. Daily-use items, medicines, food products, footwear, and household goods are among the commodities where, as per new rules, tax rates have been slashed. For instance, the tax on medicines, which was earlier 12 per cent, has been reduced to 5 per cent. Several drugs for treatment of cancer and other life-threatening diseases have been exempted from GST. Some medical stores claim they were already offering a 10-15 per cent discount and that the new reduction is only a part of this. Likewise, the tax on items like detergents, shampoos and processed food has been rationalised. While automobile, electronic and dairy companies have begun implementing the revised rates in their supply chains, this is not done in retail shops across Kurnool, Adoni, Nandyal and other towns in the region. Officials of the GST department, moving around the towns in brand new vehicles, seem unconcerned. Consumers allege that traders are fooling and fleecing the consumers by selling products at old rates, due to this lack of monitoring. "We don't see any reduction in our daily purchase bills. Traders say new prices will apply only when fresh stock comes," said a consumer in Kurnool. Several manufacturers have already sent word to traders that they could sell old stocks too with reduced prices, but this is being ignored by most shops. The non-implementation of the new rates appears to be more severe in the case of medicines and essential commodities. Though the central government directed markets that sale of goods must be done with updated prices based on revised GST rates, shopkeepers and medical stores are charging the old rates without any fear of action from the authorities. The daily medicine sales alone are estimated to be of several crores in the joint district. Consumers are hardly benefited by the rate cuts. "People who had taken health insurance policies even before the present GST reforms are now being charged without GST and are also offered heavy discounts. The Centre has completely removed GST on the insurance sector. This is appreciable," said SV Mallikarjunam, a retired bank manager. With retail trade in essentials worth an estimated '20 to '25 crore is happening daily in the both districts, even a small delay in enforcement means a massive financial loss to consumers. The commercial taxes department and central GST enforcement officials have not taken any action against erring traders in the district so far. Nor have they established helpline desks or toll-free numbers to handle consumer complaints. Local consumer forums have urged the commercial taxes department and central GST officials to immediately launch special drives, inspect markets, penalise violators and start a public helpline to ensure the benefits of GST rate change reach the people.

Latest Stories

Read Full Story