GST effect: retailer urges PM to print basic price on products

A trader from Mandya has written a letter to Prime Minister Narendra Modi, explaining about the practical problems faced by the retailers after the implementation of the Goods Services Tax (GST) to prepare invoice for the sales at their outlets.

Prakash L Prabhu, proprietor of Bengaluru Traders, a grocery store, has shot a letter to the PM, pointing out the difficulties in preparing a bill, as GST has to be charged on the basic price of the product and not on the maximum retail price (MRP), which is printed on the packet.

Prakash has explained that preparing a bill becomes a cumbersome process during bulk sales as the GST for each product is different. Moreover, the MRP printed on the product is much higher than the real price and sometimes, it is confusing to find the basic price to apply GST, he has opined.

Basic price

“If the basic price is printed on the packets of the products, it becomes easy to levy GST. If the MRP of a cooking oil is Rs 120, it’s basic price is Rs 80, which includes traders margin. An invoice can be prepared adding the GST, but if there are too many products to bill, it becomes confusing. Most of the shops and malls print MRP of Rs 120 and sell the oil at Rs 80, projecting that the common man saves Rs 40,” he has pointed out.

So, Prakash has written a letter to the PM, seeking his attention to solve the problem and has suggested printing of basic price on the packet for smooth transaction among small traders.

GST network

Prakash Prabhu, who had registered under the GST network has now withdrawn as he has reduced his transactions to less than Rs 20 lakh, to avoid technical problems. “GST benefits the country, but if the technical problems are not set right, many will follow suit. I hope the PM will address the issue soon,” he said.

DH News Service