Merchants in Prime Minister Narendra Modi’s home-State continued to do routine business on the first couple of days post implementation of GST as shops, including that of restaurants adding the GST rates to their bills replacing old taxes.
Taking to The Pioneer, a restaurant owner Pratik Patel said that most of the air-conditioned restaurants in Ahmedabad have begun levying 9 per cent Central GST and 9 per cent State GST. According to Patel, the taxes have come down by 3 per cent from previous 21 per cent.
Reminded of their bitter experience of protesting against the 1 per cent excise duty, the jewellers resigned to the new taxing system. “We generated our first bill as per new tax structure of 1.5 per cent Central GST and 1.5 per cent State GST,” said Dinesh Zavery, an Ahmedabad based jeweller, adding that most of the jewellers reported normal business in the wake of GST implementation
A utensil manufacturer said that most FMCG and white goods traders have gotten rid of their inventory and are starting fresh now things appear good. He, however, cautioned that they need to see how it is going to be when the first deadline (July 10) to uplink invoices comes up.
Owners of supermarket revealed that things were normal. Some of the small grocery shops owners quoted that they have not yet registered for GST. Suresh Patel, a grocery shop owner said that there are some problems with a few products as suppliers have stopped sending them in the wake of GST.
Meanwhile, Gujarat Chief Minister Vijay Rupani welcomed the Rollout of GST during a function in Ahmedabad to celebrate advent of new tax regime in the country. The Ahmedabad chapter of the Institute of Cost Accountants of India has set up a help desk to offer clarification on the new tax system.
MK Thakkar, a practicing charter accountant in Gujarat claimed that he has not heard any hue and cry in the market or from any of his clients. With the indication of a switch in the financial year to January 1 next, they may be hoping that there is time to streamline their books and the Government would be lenient, said Thakkar.
Though overall there was smooth transition from old tax regime to new GST, there were some protests also as kite manufacturers gathered at a rally to object against levy on cottage industry that has small seasonal earnings. Several cloth shops were closed on July 1.