Business News


eNarada, Bengaluru, Saturday, July 1, 2017

If it were the traders who were scratching their heads over the Goods and Services Tax (GST) till June 30, it was the turn of the ‘Aam Aadmi’ to feel the heat from July 1.

People were in for a shock when they went to dine at Kamat Upachar near Channarayapatna as the food prices had gone up, courtesy GST. eNarada Pictures

Despite the grand announcements by Prime Minister Narendra Modi and his colleague-finance minister Arun Jaitley that the GST would bring down the cost of the most of the items, it looked otherwise.

For example, an ice cream which would cost Rs 25 before the introduction of GST was now sold at Rs 28!

A coffee in Bengaluru’s prestigious MTR cost Rs 38; shockingly, Rs 6 was the GST which was added to the actual price of Rs 32 for this cuppa!

Similarly, a person who had ordered a veg schezwan fried rice (Rs 175) and south meals (Rs 200) at Rajadhani had to cough up Rs 442 (GST-Rs 67) instead of the actual price of Rs 375!

So, now one wonders why are the common people being charged GST above the maximum retail price!

An inflated bill, thanks to GST

If these were to be the benefits of the GST which has been billed as the biggest tax reform in the country, then it is surely to give rise to inflation and another round of slowdown (after demonetisation).

Praneet Kumar, a customer said, “It is ridiculously high and GST is nothing but leaving a big hole in the pocket. I wonder why we are being charged the GST and instead why can’t the billing be reduced to the percentage of the new tax and then levy the tax on the bill so that the MRP remains more or less the same. For example, if the ice cream on Saturday costs Rs 28 (the MRP is Rs 25 + GST-Rs 3), in the billing, they should have ensured that the actual price of ice cream should have been Rs 22 and with addition of Rs 3 as GST, the ice cream should have been sold for Rs 25 and not Rs 28.”

Customer is NOT a king

While the whole country is to be affected by hike in MRP prices, there seems to be no effect at Hassan bus stand. Strangely, the traders at the Hassan bus stand follow their own pricing which are irrespective of GST or MRP. The traders blatantly argue that they need to be paid Rs 2-Rs 5 extra for whichever item is sold. When argued, the traders refuse to budge saying that it is their “birth right” to sell all the times above the MRP just because they are sold at bus stands.

This outlet in Hassan Bus-stand charges extra and hapless customers are taken for a ride.

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