GST throws consumers into a tizzy

Hyderabad: First day of the Goods and Services Tax (GST) shocked scores of consumers in the city who had been carried away by the “One Nation and One Tax” slogan. Because, the bills handed over to them at the shops and restaurants did not have the kind of goodness they had expected in them.

T Phanindra from Sainagar of ECIL, a staunch supporter of the ‘India First’ slogan of the Prime Minister Narendra Modi, had taken the ‘One Nation and One Tax’ to mean that there would not be any taxes levied by the State government and there would only one tax across the country that would be collected by the Centre.But, when he got his bill for breakfast on the first day of the GST, he found that the bill showed collection of Central GST and State GST separately.

For example, bills issued at several restaurants showed the Centre and State collecting 18 percent, each charging 9 percent of GST on the bills for onion ravvadosa, pesarattu and pongal at a hotel in LB Nagar. Further, people have to shell down more as part of the round off factor.

Clarifying on this, K Tulasi Das, a tax consultant said that there are three kinds of GSTs. In simple terms, State collects GST on some items, the Centre on some other items and both the State and Centre on yet some other items which are listed separately as per the GST regime.

The One Nation and One Tax means, unlike earlier, irrespective of the States, a single slab rate of tax is levied on a particular item across the country, he said.

However, P Raghu, working in the finance wing of a hatcheries company, pointed out that there is confusion among the higher ups as well as the middle rung of the management on the GST. Our company has different products ranging from chicken, poultry feed and other varieties besides extending lab and medical services.

For this, the company has hired an audit and tax consultancy firm to study product-wise GST slabs in which our products come. “We had to hire consultants because the other companies having similar products like ours are also in a confusion,” he said.

At many places, including some super markets, the software was not upgraded and long queues were seen at counters as the staff were seen preparing hand written bills. The shopkeepers said it would take about a week for the system to become streamlined.

K Venkatesh, consumer at a super market said,``Wehave been hearing about GST. The Prime Minister said that it would be more friendly on the pockets of common man. It will take some time to understand whether it would be a bane or boon. At present, the traders don’t seem to be prepared for it. The billing is causing inconvenience to us. I have been waiting for more than 30 minutes to get the bill.”

M Haritha a housewife said,``GST is adding a burden to our pockets. We can’t avoid the daily products .We are also told that bank transactions would also invite higher charges. We are used to swipe either debit or credit cards. It is all confusion for me. ” Mohammad Habeeb, Manager of Natural Ice-cream Parlour, said that it would take some time for consumers to understand the new system. He said only the tax pattern had changed. The cost of ice cream remains the same.

Dheeraj Kumar, supervisor of in another super market, said, ``Last night we updated the new software in the system. The new rates as per GST would become effective once the new stock arrives. Till then, he said, they were selling the goods at the old MRP only.