In Mumbai, the first day of GST regime began well for the organised retail and hypermarket chain operators as customers queued up just like another weekend.
Day One of Goods and Service Tax (GST) was a mixed bag as traders struggled with compliance while consumers let their wallets do the talking as organised retailers and large brands continued with their GST discounts.
While the weekend coinciding with GST rollout has helped retailers and big brands extend their pre-GST discount sales and clear their stocks, clusters of small- and medium-sized companies, especially in pockets of Tirupur, Agra, Surat and Kanpur, continued to struggle with compliance, with some intensely protesting the implementation new tax regime.
In Mumbai, the first day of GST regime began well for the organised retail and hypermarket chain operators as customers queued up just like another weekend.
Kishore Biyani-promoted hypermarket chain Big Bazaar launched a GST Muhurat Sale to celebrate the occasion by opening majority of its stores between 12 mid-night to 2 am.
The hotel and restaurant industry reported a 35per cent drop over the past week. "During the GST implementation phase, we are expecting issues to crop up, especially in the first three months, but are not unduly worried about it as the government is expected to help us resolve them," says Dilip Datwani, president, Hotel and Restaurant Association of Western India (HRAWI).
Automobiles – price changes
Most showrooms in Mumbai wore a deserted look. Dealership executives said the few people who visited inquired about GST-related discounts.
"Not a single sale has happened since morning," said a sales representative present at a 2-wheeler showroom in Mira-Bhayander, a far-flung suburb of Mumbai.
Most auto companies have already published the revised price list, slashing rates in several cases. For instance, leading automaker Maruti Suzuki India has slashed the prices of its models by up to 3per cent with immediate effect. It has, however, hiked prices of diesel variants of Ciaz and Ertiga models with smart hybrid technology by over Rs 1 lakh because of withdrawal of tax concessions on mild hybrid vehicles. Toyota Kirloskar Motor has cut prices by up to 13per cent, but said it would also hike prices of hybrids.
Starting-up pain
"You win some, you lose some. But ready to take the initial pain," says the lady proprietor of a start-up that sells personalised coffee mugs, coasters, notebooks and such other stationery items, each bearing graphic art. Her coffee mugs are her highest selling item. And that's where she is taking most of the pain.
Under GST, tableware, kitchenware, and other household articles of porcelain carry 18 per cent GST, up from 5 per cent.
Domestic smartphone players hailed the government's decision to impose 10per cent basic customs duty (BCD) on cellular mobile phones and specified parts like charger, battery, wire headset, microphone and receiver, keypad and USB cable to protect local manufacturers.
"We are thankful to the government for this bold step just before the implementation of GST," said Rajeev Jain, Director and CFO, Intex Technologies, in a statement.
Protests Galore
Even as the GST regime was rolled out on July 1, several cloth merchants of Agra, traders from Surat and Kanpur, small- and medium-sized companies in Tirupur in Tamil Nadu have raised concerns about the new tax regime.
Bharatiya Udyog Vyapar Mandal, consisting of 17,000 big and medium traders' associations, has called for a meeting on July 6 to decide the course of action ahead.
Meanwhile, around 1,000 movie theatres in Tamil Nadu have decided to protest against GST rollout by indefinitely stopping the screening of films from July 3.
(With inputs from agencies)
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