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Confusion greets GST on Day 1

Confusion prevailed in the state on the first day of GST rollout. Several wholesalers almost stopped selling and some retailers cut short sales.

Published: 02nd July 2017 07:36 AM  |   Last Updated: 02nd July 2017 07:36 AM   |  A+A-

By Express News Service

THIRUVANANTHAPURAM: Confusion prevailed in the state on the first day of GST rollout. Several wholesalers almost stopped selling and some retailers cut short sales. As the majority of commodities are sourced from other states, the delay in GST enrolment in other states will affect the state. Enrolment in major supplier states like Tamil Nadu and Andhra Pradesh is around 60 per cent.

Goods transportation from other states is also being hit, which may be attributed to a glitch in the issuing of GST ID number. Earlier, there was a communication the ID can be secured using Aadhaar number.  But his has not happened. Only those who uploaded digital signatures were able to secure GST ID. Wholesale dealers in the state have expressed concern it would affect transportation and may result in shortage. Mohammed Sidheek, a wholesale dealer in Chalai market in Thiruvananthapuram, said early resolving of the issue is imperative to prevent shortage of essential commodities in the coming days.   

A change in tax rate is another concern which will lead to the price rise of some commodities. For example, the rate of polypropelene packing material used for packing eatables and groceries was upped from 5 pc to 18 pc. This will affect customers and may cause inflation, according to traders.
A delay in the movement of provisions and vegetables will adversely affect the state and result in price rise, traders said.

Market experts say the confusion will result in hoarding by traders. As many traders did not submit their stock inventory on June 30, there are chances these traders will resort to selling the commodities in new rates after a few weeks.In many parts of the state, retail dealers sold commodities without bill or pre-dated bill.



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