Kendriya Bhandar stores close on first day of GST

Tribune News Service/Agency

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New Delhi, July 1

The Kendriya Bhandar (KB), a chain of Central government’s outlets, have been closed two days before the Union Government has implemented Goods and Services Tax (GST) as the KB does not have new list of rates that have been changed following the new system of tax.

Rishi Mathur, spokesperson for the KB, said following implementation of the GST there had been major change in rates of food items. The officials concerned are busy in deciding new rates. It will take three to four days to open the outlets.

When asked that old stock can be sold according to the current rates, he said, “We have stopped purchasing the items for the past one month. There is no stock in the storeroom. Once the rates are decided, items will be purchased to sell in the KB outlets.”

He said the KB has 100 outlets in the city and all have been closed from June 29. He said majority of the items would become cheap in the new tax system.

Many refrain from doing business

After the countrywide launch of the Goods and Services Tax (GST) midnight, many businessmen in Delhi-NCR today seemed confused about the new indirect tax regime, with some even refraining from buying and selling any products.

However, there were some who found different ways of generating bills, while a number of businesses with updated software generated bills with GST levied on their products.

Some eateries were seen handing out bills displaying state GST as well as Central GST applied on the sale.

Noida's Kay Dee Electronics manager Naresh did not sell any product on the first day of the new tax regime, saying there was no clarity on its imposition.

"We are waiting for the complete information from the GST Council about levying of the taxes. Only after receiving it, we will resume our business. There's a lot of confusion about the rates," Naresh said.

Similar was the condition of several other shopkeepers. They also waited to have some clarity to be able to go ahead with the transactions.

"Very few customers have been visiting us, but they are also being sent back as we haven't been able to understand the new law as of now," said Anand Kumar from a handloom emporium.

"We will resume as soon as we get a clearer picture about it," he said.

Kumar expressed disappointment and questioned the government's "hasty move" of implementing the policy.

"Why so much hurry to implement this policy, which is not clear to the majority in the country?" he said.

On the other hand, there were proprietors using the cash memo and providing hand written bills after levying the GST.

When asked if they had complete knowledge of the GST regime, a shopkeeper of CS Electric Company here said the information available online was helping him make bills.

"We are reading about the GST rates online to be able to make invoices," 45-year-old Ram Gyan Mahto said.

Raymond manager Pawan Aggrawal, "We are not generating bills right now. Customers have been taken into trust that they would receive bills on mail once our system is updated."

"Those not comfortable with mails have given us their phone numbers, so they can come and collect it later," Aggrawal said.

A Firefox bicycles outlet has promised its customers to send bills later through WhatsApp, mail and other options, as they are also waiting for the software on their systems to be updated.

Many eateries and restaurants said they had updated the system soon after the launch of the GST and were comfortably generating invoices for the customers.

"We had updated the software before 8 am today as people usually start rushing in early in the morning," Kamlesh Jha from Bikanerwala said.

Aggarwal Bikaneri's Palwal Kumar said: "We were aware that there is going to be a tax of 12 per cent on snacks and 5 per cent on sweets. We were prepared to follow the new system."