VIJAYAWADA: As the much awaited Goods and Services Tax (GST) came into force on Saturday, majority of the electronics showrooms on MG Road and Eluru Road witnessed poor turnout of customers to purchase TVs, air conditioners and refrigerators.
When Express visited several showrooms, majority of the traders were selling existing stocks of televisions, air conditioners and refrigerators at the normal prices to the consumers. “We are yet to receive the new tariff including the GST. It may take at least a week for us to sell the products at the new prices,” said V Bhaskar, store manager of Panasonic showroom.
“We are paying GST to the government. Compared to Friday, business was slow on Saturday. We are yet to receive the new stocks from the manufacturers. Until then, business will not pick up any momentum,” added the store manager. In addition garment and furniture shops, mobile showrooms also witnessed poor turnout. Majority of the public are still unaware of the taxation slab fixed for various products. This was the main reason cited by traders in One Town, Besant Road and Vastralatha complex for the poor business. At the other end, GST implementation on medicines did not affect the traders much.
At several medical shops, the traders claimed that only 12 per cent GST was being implemented on medicines other than life saving drugs, while 28 per cent is being incurred on cosmetic drugs. Though medical shops are directed to issue computer generated bills for the consumers following the GST, several traders in Suryaraopet and Nakkal Road failed to follow the direction and issued handwritten medical bills.
“Awareness sessions are being conducted for traders regarding GST implementation. Moreover, the State government has given three months exemption for the medical traders without imposing hefty fines despite their failure to purchase the stocks online,” said Krishna District Wholesale Medical Traders Association secretary PS Patnaik.
Restaurants and hotels have started charging 18 per cent GST on food bills as against to the 21 per cent VAT on Friday. Two star hotel owners said that they have been charging 18 per cent GST for accommodation from Saturday.