The exact affect of GST will be known only after the rainy season is over and normal phase comes in.
The wholesalers are the people who more and less decide the market trend. If they add GST to their prices rather than adjusting a part of their margin in it then such anomolous situation will arise. Govt has already warned the business community on this aspect and it will take time for these confusions to fade away.
Thoughts exchanged is knowledge gained.
People have to understand GST in terms of the comparison of earlier taxes with it then only it's correct effect will be known.
The interesting thing is due to GST some of the items may become slightly costlier but many items should be cheaper. As that is not happening in reality, it means that the whole sellers and retailers are not passing the benefit to customer. Govt has already announced that the shopkeepers adhering to such unethical practices will be punished.
Now it will take some time before these things are streamlined and GST is followed by people in its real spirit.
Whenever there is a change of tax regime some crooked people take advantage of the situation but soon they will be caught in the vigilatory network and will have to pay for their wrong doings.
Knowledge is power.
Similarly Tomatoes rates are also very changing. Again only availability is the reason.
But many of the small business people under the name of GST trying to collect higher rates from the innocent purchasers. We should watch out.
Yesterday my driver wanted to purchase some books for his son. Notebooks. The seller told him that the rate is increased by Rs. 6/- per one book because of GST. My driver everyday sees the newspaper and have some understanding about the GST. Immediately he told that the tax on books has come down so you have to reduce the price. The shop owner denied. Then my driver asked him a bill with mentioning the GST %. The vendor withouting replying has given him the notebooks at the old price. Beware of this kind of vendors.
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease