A few hours before the rollout of the much-debated Goods and Services Tax (GST), hospitality sector is in the grip of confusion. Hotel and restaurant owners here jostle with the clauses of the new system that would come into effect post 12 midnight. Andhra Pradesh Chamber of Commerce and Industry Federation president Muthavarapu Murali Krishna says there is lot of confusion among traders in all sectors about GST.
Input Tax Credit
Input Tax Credit, he says, is one such concern. “GST allows a company to claim refunds on the tax already paid in the value chain, which means it will only pay tax on the value it adds. But there is still little clarity among traders how the Input Tax Credit system will work, especially for those who are at the end of the supply chain,” he rues.
Separate bills
Many hoteliers here plan to serve separate bills to their customers before and after 12. Some of them plan to put down their shutters for some time for a dry run of the new GST software which will have to be in place by Saturday.
Traders are also worried about the harsh punishments such as imprisonment associated with GST violations.
“These things should be done away with, till people get used to the new system and are well-versed to handle it without any confusion,” says Malleswara Rao, manager of a restaurant in Ashok Nagar.
“We appreciate the thoughtful act of the State government, which organised a series of seminars and workshops for better understanding of the GST by the stakeholders. Extension of such programmes for at least one more year will do a great deal of good to people who are directly affected by it,” says Mr. Murali Krishna.
