Experiences with GST in India: An SEO Guide for Understanding Its Impact on Retail and Business

Hello to all, Namstey!

Now, after four months of India's Goods and Services Tax (GST), I have had a few personal experiences that shed light on its impact on retail and business. Here are some of the stories that resonate with many:

Personal Stories Post-GST Implementation

Old Newspaper Sale: A few days ago, I sold a piece of old newspaper. A customer responded, "Why such a cheap price? I could give you more money for it!" p>While I replied with a smile, "Thanks to GST, everything has become a bit more costly."em>

Food Purchase: At a local market, I witnessed a similar situation. When purchasing food, the price had increased due to GST. This is an espoused impact of the tax, but often felt by consumers.

A Water Bottle Incident

At a railway station, I saw a peculiar pricing instance. A fellow passenger bought a water bottle for 15 rupees, and the shopkeeper asked me the same price. Initially, I was shocked, thinking that railway stores usually charge above the Marked Retail Price (MRP).

However, when it was my turn, the shopkeeper asked for 15 rupees. Remembering the previous GST-related issues, I felt happy that the situation was not drastically affected by GST.

In conclusion, while GST didn't change the prices drastically, many shopkeepers used it as a way to boost their profits. Some shops increased prices under the guise of GST, which is a topic of genuine concern.

Government and CBEC Reports on GST Implementation

According to the Central Board of Excise and Customs (CBEC), around 26,500 crore rupees were collected in July under the Integrated GST. This figure is 60% higher than the previous tax collections, with only 16,625 crore rupees collected in July of the previous year. This increase is attributed to the streamlined tax system under GST.

A significant advantage of GST rollout has been the substantial increase in the number of businesses registered under it. Nearly 12 lakh new businesses have been registered, promising a boom in revenue collection and reducing tax evasion.

Expected Impacts on Business and Compliance

One of the key benefits of GST is the reduction in compliance. The ease of doing business is expected to increase substantially. Business houses will prefer to deal with registered dealers, which will allow them to claim input tax credits, a benefit not available under the composition scheme.

Additionally, the number of registered dealers has increased by more than 25%, leading to a higher level of compliance. Unregistered and unaccounted trade will witness a significant reduction, leading to higher tax revenues for the exchequer.

The government's response in reducing tax rates will be crucial to fully capitalize on the benefits of GST. Time will tell if these measures will indeed materialize.

Thank you for reading!