Speak up: Have Mumbaikars felt the pinch of GST yet?

The introduction of Goods and Services Tax (GST) is the biggest reform in India's indirect tax structure. Its purpose is to introduce one single tax on supply of goods and services, right from its manufacturing stage to delivering it to the end consumer. Excise duties, service tax and state levies like VAT are now subsumed under GST.

Under the new tax regime, daily items like vegetables, milk, cereals, meat and curd, and vital services like education and healthcare attract zero tax. Cars, as well as two-wheelers with engine displacement of less than 350cc, will be cheaper, while those with engines bigger than that will see a rise in prices. Most mobile phones will be costlier, as will aerated drinks, chocolates, ACs and refrigerators.

A week into the rollout of GST, DNA spoke to a cross section of Mumbaikars from across the city on how the change in prices has affected their spending, and to gauge their reaction about the changes in prices during the transition.

RESIDENTS' SPEAK

There is still a lot of confusion amongst consumers about the taxation policy under GST. This has impacted around 60 per cent of the business. While introduction of a single tax is a welcome move, some amount of awareness was essential before its implementation.
—Mitesh Mody, resident of South Mumbai

I believe that the introduction of GST is an excellent step for the future of the country as it will help in the growth of Indian economy as well as the administrative effectiveness of tax collection. The GST regime will not only benefit the consumers but also government and business houses. Under GST, there are hardly any chances of tax evasion. In addition, the price of the goods will remain same across the country.
—Tripurari Panda

It is good that the whole nation now follows one taxation policy, but at the local level we are facing various issues. Many things including hotels and restaurants have become expensive. I have noticed that there is so much confusion among the traders and businessmen. The government should issue a proper advisory for all businessmen clearly explaining the policy
—Tarun Bhatia, resident of Bhandup

The impact of GST is definite but we will know its impact on our wallet only by the end of this month. There are certain expenses that I cannot avoid and I know I will definitely feel the pinch. Also, guidelines need to be set in place and there should be more clarity. As far as cost is concerned, everything was under 12 per cent in the construction industry earlier and now everything falls in the 18 per cent bracket. Due to this, finished products are only going to become more expensive.
—Biju Augustine, resident of Andheri

My family and I had plans of buying a property. We have been thinking about it for some time now, but with the implementation of GST, there have been many reports that property prices may shoot up. Also, taxes will increase on property purchase; hence we have kept the idea on hold for a while now.
—Vineet Amonkar, resident of Thane

GST could lead to our economy’s growth. It does have its pros and cons but it will hopefully lead to a positive change. Citizens have already started feeling the pinch of GST. The government should have first put together systems in place which would have eased the process of the new tax reform
—Dr Laxman SM, resident of Mulund

EXPERTS SPEAK

The GST impact so far has been smooth and much better than what was earlier apprehended. However, there are certain glitches which need to be addressed. Due to GST, outbound tourism will definitely be hit as travel agents will have to charge consumers more. Earlier, the service tax was levied only on hotel component of the total bill. But now under GST it will be levied on all components including local travel by car, food, entertainment shows, etc which will increase the total cost.
—Iqbal Mulla, Chairman, Global Tourism Council

Although GST is far from perfect, we realise how much better it is than the myriad taxes we've been subjected to over the last several decades. Once the regime settles in, we can look forward to it spurring the economy by incentivising, manufacturing and making business decisions independent of taxes.
—Pratik Jain, partner and leader indirect tax, PwC India