With just a day left for the launching of the GST (Goods and Services Tax) regime, traders in the twin cities of Cuttack and Bhubaneswar seem confused to understand how the tax reform would impact their businesses.

The system is likely to pose difficulties for several shop owners as they even don’t even use a calculator, what to say about their access to computers.

“This is such a major tax reform, but there is little effort from Government authorities to explain how it works,” Bhatia Sales owner Dinesh Bhatia said.

Stating that businessmen have to file GST online three times every month and an annual return, he said, “I can file GST as I am acquainted with computers. But my father will find it very difficult to file GST as he doesn’t have access to computers.”

He said the process would lead to increase in work load.

The businessmen in the Unit I market are waiting to see how the tax form will impact their businesses.

“We are unable to predict anything now. We are apprehensive of its outcome,” said Sunil Mohanty, a garments shop owner of Unit I market.

“The wholesalers will have to file the GST online and it has to match with the GST filed by the person to whom the goods are sold. Minutest of error can lead to blocking of accounts,” he added.

The GST Council has announced a tax of 5 per cent for yarn and cotton, and readymade garments below the `1,000 mark. For garments above `1,000, the tax rate has been fixed at 12 per cent.

Ronit Kocher, one of the partners of Binod Textiles, Kalpana Square, expressed his displeasure over GST Council’s decision to fix 12 per cent tax for garments above `1,000.

The Government published lists for almost every item from shampoo to tea to automobiles to be taxed within four broad categories of 5 per cent, 12 per cent, 18 per cent or 28 per cent.

It had already ordered all businesses in January to adopt or upgrade cash registers and computer systems so that they would be able to file tax returns under the new tax regime.

Unbranded food staples like vegetables, milk, eggs and flour are exempted from sales tax along with health and education services where as items like tea, edible oils, sugar, textiles and baby formula will attract a 5 per cent tax.

luxury items, including motorcycles, perfume and shampoo, will be taxed at 18 per cent or higher. They account for about 19 per cent of all taxable items.