PANAJI
As the new Goods and Service Tax (GST) rates roll out, the State government has announced action against shopkeepers refusing GST price cut from Monday. The officials from the State GST and Commercial Tax department are directed to conduct random surprise checks across stores to ensure businesses pass on the rate cuts and don't profiteer.
The government, at the same time, has taken note of the fact that it may take some time for new GST rates to regularize, as according to their initial inquiry, many shopkeepers or retailers have raised concern about not receiving any revised price list or new MRPs from the companies. Under such a situation, the shopkeepers are in a dilemma to sell the stock at current prices.
The new GST reforms are being implemented across the country from Monday, making a historical shift in the country’s indirect taxation with two slabs of 5 per cent and 18 per cent and a special slab of 40 per cent for sin goods.
The State finance department has already issued a notification announcing the implementation and so also advisory, in line with the Union government to make it easier for companies/ shops to implement the changes.
Speaking to The Goan, Commissioner of Tax, S S Gill said that the government has already issued a notification and advisory on the implementation of the new GST regime. “Everyone will have to adhere to it,” he said.
A senior officer said that to ensure businesses pass on the rate cuts and don't profiteer, tax officials will conduct surprise inspections and take action against those who refuse to reduce prices on essential items. “The inspections will start from day one itself. The department will also provide necessary guidance to the shopkeepers, stores if they need any support in the implementation,” officer said.
The Officer said that the Department of Consumer Affairs, Government of India, has issued an advisory to make it easier for companies to implement the changes, but the system could create some confusion at local stores. The officer said that the old packaging can continue to be used until March 31, 2026, or until the stock runs out.
“Under the new rules, manufacturers, packers, and importers may choose to stick new price labels on products made before September 22, while the old MRP will still remain visible. This could result in some products showing two MRPs—the original price and the revised GST price. MRPs on old packaging can be corrected using stickers, stamps, or even digital printing,” officer said adding “this could lead to confusion among the sellers as well as buyers”.
The officer said whether prices have decreased or not will be strictly monitored. “Government officials will purchase those items for which a price reduction has been announced. If it is found that prices have not been reduced according to the tax cut, necessary action will be taken,” officer said.
Prices of some everyday essentials and services have fallen, providing relief to households already grappling with inflation. Conversely, leisure, luxury, and certain lifestyle-related items have become more expensive, prompting many to reconsider their spending habits.
Leading appliance makers have reduced prices of room air conditioners by up to Rs 4,500 and on dishwashers by up to Rs 8,000, under the new GST rates. At the same time, car buyers in Goa are waiting eagerly as from entry-level hatchbacks to luxury SUVs, prices will be slashed by anywhere between Rs 65,000 and Rs 8.9 lakh, depending on the model.
However, garments worth more than Rs 2,500, will attract 18% GST, up from the earlier 12%. In contrast, the tax on footwear costing up to Rs 2,500 per pair has been reduced from 12% to 5%. For pairs priced above Rs 2,500, the GST remains unchanged at 18%.
A senior bank employee of a nationalized bank said, “since the announcement of new Tax rates, not a single person has come forward for car loan but are rather waiting for September 22”. “On an average we used to get one or two car loans every week. But this entire September, not a single person has approached us for the same,” officer said.
The companies, in turn, are expecting a double-digit increase in sales of vehicles, electronics, etc during the festival season with Navratari kicking off.
