VISAKHAPATNAM/SRIKAKULAM: After clocking a huge business owing to heavy discounts on Friday, the markets in the city opened on a dull note on the first day of the enforcement of the Goods and Services Tax (GST) on Saturday, with the customers treading cautiously while making their purchases.
The shopping malls, electronics outlets, garment shops including the branded showrooms, furniture and cellphone outlets sported a deserted look with fewer footfalls. Many shops in One Town, Maddilapalem, Dwarakanagar and a few other areas registered a thin turnout of customers, while many electronic appliance outlets remained closed in Dondaparthy and Dabagardens. However, there was no major change at food zones, restaurants and hotels.
“The tax on Friday was 5 per cent, but after the GST rollout, we are charging 12 per cent now. There are no customers on Saturday. We expect the increase in sales in the coming days,” a representative of a garment showroom from Siripuram told Express.
Hotels started charging the new tax as per the GST norms. A star hotel in Ramnagar charged 18 per cent tax on Saturday on food, as against the 21 per cent VAT on Friday. Daspalla Hotel authorities said that for accommodation, they charged 18 per cent GST.
“On Friday, the VAT was 14 per cent and with the GST, we are charging 21 per cent now. However, if we consider overall price, the charge will be around `100 to `120 more,” said a representative of the Daspalla Hotel.
In Srikakulam too, the shops and showrooms wore deserted look. Despite no price hike in hotels, most of them remained closed. Many of the shops followed the old billing system.
“Despite no price hike, we saw a few footfalls on Saturday morning. So, we closed down for the second half of the day. GST has rolled out.
But, we do not have a clue as to how to implement it,” said Bhavani Prasad, owner of Sri Rama Parlour Hotel. Despite prices coming down for two wheelers, no footfall was registered, said the sales office of Hero showroom in Srikakualm. “Under the GST, the prices came down by `1,000 to `1,500 depending upon the vehicles. For spare parts, there is no price hike. We are following the old system of billing on Saturday,” they said.
The provision stores, without knowing under what tax slabs a particular commodity is coming, continued to sell products as per the older rates. Cellphones stores too received a thin crowd. “ We have stopped the sale as we have no clarity on the selling price after GST,” said Shekhar, a salesman at a mobile shop.
However, the commercial tax officials are planning to conduct more awareness programmes.