Most were clearing out old stock at old rates, and offering discounts even after the GST rollout.
The dawn of a new tax era broke on July 1 but soon descended into chaos when it became apparent that most of the national capital’s small and medium shopkeepers and restaurants were not in compliance with the Goods and Services Tax (GST). Instead, they were giving out hand-written bills to consumers since they either hadn’t registered for GST or their computer systems did not support the network for the new format. Most were clearing out old stock at old rates, and offering discounts even after the GST rollout.
Even Smoke House Deli, a leading restaurant in Khan Market, was giving out hand-written bills, explaining the break-up to each customer. Most other shopkeepers in one of the nation’s priciest retail space were offering hand-written bills, too.
Mother Dairy, one of the largest milk and milk-food supplier of Delhi NCR has more than 800 booths, but not one has registered for GST yet.
The first batch has been called for registration process on Saturday on Patparganj Mother Dairy plant.
Chief financial officer of Mother Dairy, Meghnad Mitra, said to dna that “our concessionaires were not registered under the old VAT regime; hence, they qualify as new vendors. The registration process of new vendors have started from June 25th, 2017 and we are in the process of getting them registered”.
Though normal milk is exempted under GST, other milk products are being charged at the rate of 5 to 12 percent. Under GST Cow Ghee is Rs 20 more costly than earlier for half kg. Most of the flavoured milk attract 12 percent tax followed by classic curd at 5 percent.
“The authorities have given a window until July 31, 2017, for registering such new vendors and we hope to complete the transition within the stipulated timeline”, Mitra added
The owner of a shoes and sports equipment store said she was “trying to get through our invoice format ready as per GST system, but we are not able to do it because of the unavailability of the computer programmer”. Until then, she, too, was providing hand-written bills.
“First we have to clear our old stock then only we can think about new order and GST” she said. Another shopkeeper said it would take at least a week or two to align with the new system.
Praveen Khandelwal, national secretary-general of the Confederation of All India Traders, said “There are many traders who have multiple commodities attracting multiple taxes. Wherever there is confusion, traders are asking fellow traders or consultants to understand the rates. I think in another week or 10 days when traders have accustomed this confusion will also not be there”.
Most of the traders said they would have a clearer picture of how GST would play out once new stock arrives.
Most of the big businesses, however, have migrated seamlessly into the new system, while smaller ones are struggling to change their billing system with the different tax slabs.
The only ones laughing their way to the bank, for now, seem to be consumers, who are taking full advantage of discounts even in the GST regime.
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