Weather, GST dampen festive mood

Customers complain about high prices, traders’ worst fears come true

October 20, 2017 01:03 am | Updated 07:24 am IST - VISAKHAPATNAM

People braving inclement weather hurry up to make last-minute purchase of crackers at the A U Engineering College Grounds in Visakhapatnam on Thursday afternoon.

People braving inclement weather hurry up to make last-minute purchase of crackers at the A U Engineering College Grounds in Visakhapatnam on Thursday afternoon.

With weathermen forecasting cyclone and price of fireworks going up it’s a low key Deepavali this year.

Much before the festival season weather forecasts warned of a cyclone and parts of the State received heavy rain.

As a result, traders had been weary about how the business would be. Their apprehensions proved true with the weather remaining inclement all through Thursday.

Instead of the usual three days to five days of business, it now was reduced to two days.

Prices have gone up by 15 to 20 % and GST further added to it, said M. Srinivasa Rao, an employee.

On a purchase of nearly ₹1000 a tax of ₹ 265- 50 %CGST and 50 % SGST- was collected at a shop. On a 1000-wala that cost ₹ 459 a tax of ₹128 was levied making it ₹587. But shops that did not levy the tax sold at much lower price as business came to close. The same 1000-wala cracker with an MRP of ₹1250 came at ₹250.

Even the number of shops was less this time compared to last year. Until Wednesday licences were still being received after which shops were set up.

Around 400 shops were set up at various locations in the city with the A U Engineering College Grounds accounting for about 280.

The outlets were also set up at M V P Colony, Gajuwaka, Malkapuram and Sriharipuram. The number of shops for which licence was given less this time compared about 500 last year, Divisional Fire Officer Mohana Rao said.

Traders were not enthusiastic about the sale of firecrackers.

The prices were quite high on Wednesday with traders offering only 60 % discount and 85 % on Thursday.

Even the Super Bazar had to scale down its expectations on business.

“Prices have gone up and customers were not willing to pay the high rates. Only on Thursday we have more buyers and I am not sure whether I will make any profit,” says Giri, shop-keeper at A U Engineering College Grounds.

“Every year we used to do business worth ₹50 lakh to ₹60 lakh but now we expect it to be around ₹40 lakh to ₹ 45 lakh,” said Super Bazar managing director G. Govinda Rao.

“Besides, earlier we used to pay 14.5 % of VAT. Now in the GST regime it had gone up to 28 % impacting on rates of fireworks,” he says.

“I went to buy crackers and returned when I was asked to pay ₹ 2000 and traders talked about GST too. The same crackers I got for ₹1000 on Thursday,” said a buyer.

Eco concerns

With growing environmental consciousness some in the younger generation are against bursting noisy crackers and are instead opting for lighting up the house. The growing awareness also added to the sound and fury getting reduced to some extent.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.