GST impact: Win some, lose some

F&B: It's business as usual for restaurants

For Prakash Singh, who often visits the Burger King outlet at Churchgate for a quick bite, the bill amount on Saturday afternoon did not seem very different than usual. On Saturday when the GST took effect, business seemed usual at most restaurants and eateries. Most owners felt it was too early to gauge any impact on their business on the first day of the GST rollout.

"The bill seemed to be more or less the same," said Singh. He was not the only one to have found the price almost the same. A number of students who visit non-AC restaurants did not see any major difference in their bills.
Restaurants that followed composite tax and have to pay five per cent did not make any changes and said that they would make a change only if they require to.

However, that was not the case with all. Bakeries like Toujours in Breach Candy voiced their concerns about GST. "The implementation of GST lacks clarity and has brought about a huge uncertainty in the pricing of the products. Customers are disappointed and have even walked out of the stores thinking that our products are too expensive. This change demands a lot of paperwork and we certainly aren't ready for it," said Adelina DSouza, manager of Toujours Bakery.

While some complained, the overriding sentiment amongst owners of restaurants and eateries was that they would get to know the impact of GST only later. "We are charging 18 per cent tax that is split into equal percentages CGST and SGST," said Ratnakar Shetty, owner of Hotel Sadanand at Crawford Market.

While he moved early, popular eatery Badshah at Crawford Market said that their management was yet to decide on the future course of action. "There is confusion. The management will decide after looking at the market, whether to have separate tax or change the menu pricing," said Ganibhai Mansuri, manager of Badshah.

Fine dining restaurants said that there was no significant change. "There has not been any significant change. It is business as usual," said Riyaaz Amlani, president of National Restaurant Association of India.

AHAR'S TAKE ON GST

The Indian hotel and restaurant association (AHAR) on Saturday clarified that it had not called for any bandh against GST.
AHAR president Adarsh Shetty said, "We are in favour of GST. The government has levied 18 per cent GST on AC restaurants and permit rooms, while 12 per cent on Non-AC restaurants. Our demand is to have an uniform rate of 12 percent for all AC, Non AC and permit rooms."

Retail: City markets witness a lull on Day One

Shopping at market places and retail stores in popular places was less as compared to regular weekend as markets opened to first day of GST's implementation. Store owners said that just like they were still understanding the impact of the new tax regime, even buyers wanted to wait and watch due to which footfalls were less. But most said that they were conducting business despite not being sure of the tax rate that will be applied.

"It is too early to say about the impact. After four to five days things will be clear and we will decide what rates to apply. Right now we are still understanding," said Nariman Balsara, manager of popular supermarket Asiatic in Churchgate area.

That was however, not the case with some popular places including brands like Bata. The officials at Bata store in Grant Road, were still waiting for an update in the pricing system from their head office. For the time being, they are handing out manually entered bills to customers with old prices.

While these shops looked to sell goods at same rate, in some others customers managed to make most of the old stock that stores looked to clear. Rajendra Kalkar, president of West Coast in, Phoenix Mills located at Lower Parel, said that stock clearance and monsoon sales gave good options for the people and that ensured good business.

That, however, did not hold true for electronic stores Chinatamani World near Parel TT. It failed to make any sales from the morning.

Steel markets: Shop owners unhappy, blame it on lack of clarity

Jatin Vora bought a few kitchen items from the steel market near Kalbadevi. He was, however, not sure whether he ended up paying more or less than usual because of the introduction of GST.

"I needed it now, so I had to purchase it. I did not have a choice," said Vora among the few customers in the steel market near Kalbadevi who purchased the items without any bill.

On Saturday, the steel market which has a high footfall and heavy traffic on normal days saw little or no business with little crowding. Wholesalers and retailers blamed the government for lack of clarity and said that the market situation is likely to remain the same for a week or so.

"There is no format provided by the government for sale bill and we do not know how much tax is to be levied. If a buyer comes, we will sell but not sure of the tax that we will charge," said Sachin Shah, owner of Shah Poonamchand Roopchand that does wholesale business in utensils and other steel items.

"There is no challan book, bill book or any clarity on the tax that I will put. The tax has been implemented but without preparation. There is no pricing to respective commodity codes either," said Lalit Kumar of Rajasthan Metals.

While the steel market association did not comment on the issue, a shop owner who was asked why traders did not seek clarity from government earlier, he said, "People have sought clarity, but we want to wait for a few days to see how things work out."

The Steel Users Federation of India (SUFI), a body of steel manufacturers, brokers among others welcomed the move.

Pointing fingers

On Saturday, the steel market which has a high footfall and heavy traffic on normal days saw little or no business 
They blamed the government for lack of clarity and said that the situation may  remain the same for a week