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  • Category: Miscellaneous

    The myth about GST is over.

    During GST implementation people made a lot of hue and cry. They shouted that this is going to loot the public.

    During my household purchases in last month I found that it is not true. The average GST for the middle class is very low. It is only the cosmetics and luxury items which are at higher GST. If someone is spending on luxury items it means that he has ample money so let him pay higher GST.

    The shopkeepers have a tendency to not mention GST as the customer may ask them to pass on the benefit. The shopkeepers are also avoiding it for the book keeping and online hassles.

    Whatever it is the situation is far better than earlier VAT plus octroi etc.

    So the myth is finally over. What do you think?
  • #616337
    What are you writing? The Idly that cost Rs. 10 is Rs.12 with Rs. 2 as GST. A cup of coffee of Rs. 10 is Rs. 12 with Rs.2 as GST. The Lunch which cost Rs. 50 is Rs. 58 with Rs. 8 as GST. The quality, quantity and size remains the same. I think the middle class people are severely affected by the GST. Do you say that Idly, coffee and lunch are luxury items to levy such GST?

    No life without Sun

  • #616387
    To say that after GST prices have come down needs some previous and present data on prices of all the items we purchase regularly.
    When GST was introduced the traders and business were told certain guidelines. They were first to minus the earlier tax portion from the price of the item. Then they have to work out the new GST on the item at the appropriate rate. That will be the new price.
    But most traders especially the hoteliers did not comply with that. They simply added GST on the already selling price. This inflated the prices and the customers were looted for many months . Government did not do anything effective to curb this.
    So to know whether GST is correctly calculated and loaded , we have to know the previous tax component on the item, deduct it from the earlier retail price and find the net price. Then we have to know what is the GST rate and add it to the net price. The result will be the new price. Not enough. WE have to ensure that the trader or businessman is actually paying the GST collected from us to the government.

    If you had ensured all these and then you say the above, we may agree.

    My experience is not same. I had seen that prices on most items have increased even though for some items the price should have come down due to favourable seasons.

  • #616391
    I do not agree with the author. I went with my friend to take an agricultural loan and GST was deducted and only the rest of the money was given to him. This was not the case earlier. I did not like the concept of deducting from the loan amount, especially when it is an agricultural loan. We are getting less amount when compared to earlier, how is that beneficial to us?
    "Do not give up, things might not favour you always"

  • #616401
    Good that people slowly understanding the GST and its benefits. It is said in the past also that any big scheme or action takes time to get benefited and in between if hue and cry is overwhelmingly reported by opposition , even right people think that the scheme has gone wrong. But we the people are the right judge and we know how we spent earlier and how much we are spending now. Have you noticed that Sona Masoori rice which is famous in Telangana used to sell at 45 to 48 previously. Now it is sold between 34 to 36 per kg. Surely the GST benefits are being transfered to the public. Moreover the government has appointed a authority and also staff to check the reduced rates of GST and the benefits passed on to the customers. if not followed or adhered, the shop keeper would be booked as per the competent authority rights and rules.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #616409
    Mr. Mohan,
    How could the price of the rice decrease, and the price of the idly dosa could rise with GST? We are being cheated by the hoteliers. I do not think they pay the GST to our government. GST has benefitted the businessman but not the common man. Small and ordinary hotels should be exempted from GST, and star hotels may be included.

    No life without Sun

  • #616412
    I don't understand why we are in a hurry to issue certificates without waiting to assess the whole issue. The author says that the myth about GST is over. Is it so? Other than the fact that the bill has been passed and the policy has been ordered to be implemented, don't you think there are many areas related to GST that is yet to be cleared? Does allotting a train to a particular route satisfy the requirement unless you have put in place the tracks, the stations and other paraphernalia in place and the train actually starts running? Just like demonetization was declared without pumping in sufficient new notes, GST has also been put in place without any proper plans. The public is always told to wait. How long? Any idea? We are yet to forget the 'fifty days promise' by our PM after demonetization. The common man, excluding those who are nobler than the king, are clueless.
    'It is the mark of an educated mind to be able to entertain a thought without accepting it'. - Aristotle.

  • #616426
    It is difficult to judge how GST affects us all as we purchase too many items and hence we may be misled into believing that it's better or worse. I have to accept that food at hotels and restaurants haven't changed, in fact, in some hotels, the price has gone up stating that the vegetables and coriander like stuff are expensive, we have no choice but to pay and move on. What we need to check our home bills and food bills at least for 2-3 months, the assess the effect of GST on groceries, toiletries, hand-loom clothes, ready made clothes etc and then we can find out the real impact. We should carefully check our hotel bills carefully to see how the bill is 'adjusted'.

  • #616427
    This is a bill sent as whatapp forward, even if its false, it just makes us aware as to how the restaurants and hotels can hike the price to fit in the lowered GST and still make their profit.
    Image NOT taken by me, its a forwarded image.

    Delete Attachment

  • #616456
    There are mixed views on the subject and it is also very clear that some shopkeepers who were earlier not paying taxes have now increased their rates by 10-15% as Mr Sun has rightly pointed out.

    The unfortunate part is that these shopkeepers are still not paying taxes because
    their annual turnover is low or below the prescribed limits
    they are collecting this extra amount from the customer and pocketing it.

    Before GST was introduced in my area the tea in tea stalls was available for Rs 7 or 8 or 10 depending on the level of that shop. Today it is same. The idli in small shops is also same rate. Many other items are same.

    Some shopkeepers take advantage of new situations and increase their rates and gullible customers are trapped.

    Due to some governance, production and management issues the prices of vegetables and fruits have skyrocketed but that is not due to GST. If we remember there was a time in pre GST arena when onion prices shooted up to Rs 100.

    Anyway we will continue our discussions when new data is received from the members.

    Knowledge is power.

  • #616474
    There is still a lot of confusion is prevailing in the market about the GST. There are notifications recently reducing the tax slabs of many commodities. Only around 58 items are in higher slab rate. The rate of tax on many food items, essential commodities were brought to the lowest range. For some items, the tax is completely removed. So ultimately we may be paying less tax. But earlier days many of the small business people are not showing their actual turnover and avoiding paying tax. They accumulated a lot of black money. But now they can't do that. So GST registration is a must for them and they have show their turnover and if it is less than 20 lakhs there is no tax. But they are taking tax from the customer. So the customer is not getting any advantage from this. But GST is a very big subject and to completely understand the same it will take further more time.
    always confident

  • #616624
    Thanks Mr Rao for bringing more clarity in the discussions.
    Knowledge is power.

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