What does the Goods and Services Tax (GST) mean at the grassroots of the business? Small-scale local shop owners, especially in the rural areas of the district, are not even aware of the new tax regime.
Nobody has told them about the details of the new tax system which came in to force on July 1. Thressiamma, a small-scale vendor in Peerumade taluk says she has not even heard about the new tax system.
She sells mainly sweets and stationery items catering to the students of a nearby school. She says that it may not affect her as she is on the lowest rung in the business chain.
However, medium-level businessmen of non-food items say that their business has been considerably affected, especially during the past three days. “We are yet to take new stock, only when we do so will we be aware of the new prices,” says Thomas, who deals in textile and cosmetic products.
He says the merchants’ association will be organising a programme on GST next week. He has no registration like others as his turnover is below ₹20 lakh. He, however says that he has to register in case there is any provision for it in the new tax system.
“Post-demonetisation, there was a slump in business and the same is being experienced now,” Mr. Thomas says and adds that it is part of any new change being introduced. However, he hopes that it will settle down after the transition period.
Top-up coupons hit
Mobile phone recharging outlets are the worst-affected with the top-up coupons running out of supply. Binu Kodithottathil , who runs an outlet at Labbakkada, says that even the flexi packages cannot be used for recharge. Once new tariffs come into effect, the situation will change, he hopes.
Same is the case for small coffee shop owners. Says one of them: “All most all agencies have ceased supply of stocks and only when the new stock arrives, the price will be known. Items like biscuits are being sold at the old price till the stocks are cleared.”
Major textile outlets in Kattappana municipality are yet to be clear about GST. They say that the prices of readymade products will increase once new stocks arrive, especially from Tamil Nadu. Moreover, wholesale business has been considerably affected with the small-scale textile shop owners refusing to buy new stock.
It is alleged that local outlets were charging high prices under the pretext of GST. The price of chicken per kg is anywhere between ₹130 and ₹145 now. Before the GST, it was below ₹120 and this despite chicken being one of the items for which the tax has been relaxed.
