Confusion continued for the second day post enforcement of Goods and Services Tax (GST) amongst the traders making a beeline to the advocates and chartered accountants in the city. Some of the traders were seen billing on old rates in back dates to escape the tax effect. While wholesalers who had kept their supply on hold for the past fortnight continued to do so on second day of July till the things were crystal clear. The city residents gave a mixed response to the major tax reform of the country which is billed as the biggest in the past few decades.
The small traders who are yet to understand the complexities of the GST approached the tax consultants while the managers of one of the city based malls, seemed to be confident having learnt the nuances of GST. Speaking to the Pioneer, the mall’s manager Amit Sharma said, “It was easier for us since we updated the software beforehand. We have started billing with new codes beginning from 001. We are with the government in its true implementation.”
However, from the hotel industry to cloth merchants, the businessmen have called it as loss making reform. Inspite of long time awareness about the introduction of GST and number of seminars conducted at Government and non governmental level, there is a cloud in the minds of the people regarding certain aspects. For instance there is no notification on relaxation given in excise tax for the setting up of industry. “Although there is simplification in the GST policy but still there is no notification issued which tells the percentage of tax exemption in excise for new industries,”said a representative of the manufacturing sector.
A hotel owner from Haridwar, Vimal Mishra lamented the implementation of GST. “On the very first day of its implementation, the customers were reluctant to come to the restaurant and hotels. There is luxury tax on every type of room in the hotel. This is not desirable.”
There was no tax on textiles but now there is five per cent GST on cloth also. Speaking to this correspondent, a local cloth merchant Ravi Dhingra from Jwalapur said, “Since independence, there has never been such a taxation policy. Cloth is the need of a person right from childhood upto his old age but imposing GST on clothes is unfair both for the buyer and the seller.”
A cosmetics dealer from Arya Nagar also trained his guns against GST saying, “We welcome the GST but charging extra tax on old stock from traders is not justified.”
In spite of the GST Mitras and CAs engaged in this business of propagation about the tax, business men from the city feel that due to several ambiguities, there is going to be some inconvenience in the future. Only the government officials maintained that GST is user friendly and beneficial for common buyer.