JOIN USTraders confused about sale price of existing stock
There is confusion among traders regarding the selling price of existing stocks after July 1 under the GST regime.
The government has categorised 1,211 items under various GST slabs resulting in products and commodities costing less or more compared to the VAT/service tax regime. GST subsumes most of the indirect taxes.
Ramesh Kumar, a grocery shop owner in Rajajinagar, pointed out that several consumer items like soaps and toothpaste will cost less due to lower GST rates, while shampoo, detergents and dry fruits will cost more.
“GST will change the prices of a host of commodities. There is no problem in selling a product whose price has come down under GST. However, we cannot revise the price a product that will cost more as law restrains us from selling it at more than the maximum retail price (MRP),” he said.
Tax on medicines is another case in point. Most drugs are taxed at 9% under VAT and will attract 12% under GST.
“There is no concept of MRP in the GST regime, where tax is levied on the transactional value of commodities and is destination based,” Sajjan Raj Mehta, chairman, taxation committee, Karnataka Hosiery and Garment Association.
He said there are several finer aspects in the new tax system that need to be cleared and sought deferring the introduction of GST to September 1. Sources in the commercial taxes department said the issue regarding pricing of existing stocks is likely to be taken up at the GST Council meeting in New Delhi on Friday.
Billing
Traders are racing against time to update their billing machines to reflect the GST component under the new tax regime. The machines have to be updated to sync products/commodities with the new tax slabs.
Jayanagar Trading Association has been holding a series of awareness and orientation programmes for its members on GST.
“The orientation programmes included various aspects like billing, stock taking, e-filing among others. The programmes have built confidence among the traders to welcome the GST regime,” association founder and president Prakash Mandoth said.
B T Manohar, chairman, Taxation Committee, Federation of Karnataka Chambers of Commerce and Industry, said every tax invoice should provide details about Central GST (which will be levied by the cental government) and Karnataka GST (which will be levied by state government). He said ‘bill of sale’ will have to be provided to consumers for goods which are exempt from GST. The commercial taxes department officials were, however, not available for comment.
State to suffer losses initially with GST: CM
Chief Minister Siddaramaiah said on Thursday the state would suffer tax losses in the initial period with the rollout of the goods and services tax regime in the country on July 1, reports DHNS from Koppal. He was speaking to reporters at Basapura near here. Regarding the announcement by former MP H Vishwanath that he would quit the Congress soon, Siddaramaiah said, “Who is stopping people who want to quit the party? The party will not be poorer with the exit of one person.”