AJIT JOHN
PANJIM: The radical change in the tax structure will radically overhaul the economic landscape. It has caused much trepidation as rumor and misinformation have passed for truth.
In Goa, the authorities and trade bodies have conducted workshops to educate people about the intricacies in the new system. As the country slips into the world of GST, the retail trade in Goa has rather mixed feelings with some very upfront with their views.
Felipe Alvares of Prime Electronics said it was the best thing to have happened. He said, “We are prepared. We know the tax structure and certain items will stay the same and the price of some of the products will increase. We will not see a price increase in mobiles, though at the higher end it may change. Prices in home appliances will go up but I don’t really see a drop in sales. Those who have to buy will buy without a doubt though impulse buying will drop.”
His principals Samsung and Sony, he said, were on the ball since May and the company and its dealers had migrated to the new billing structure 15 days ago. With regards to smaller brands, however, he said there was general chaos. The big multi nationals had given clear instructions and it was all very clear.
Raj of Nucleus Nutrition which stocks supplements for bodybuilders said he did not have a clear picture and as super stockists a clear picture would emerge in the morning. The company had registered with GST and they had products that ranged from Rs 500 to Rs 5000.
Paresh Shah who runs a stationary shop said certain categories of books would witness a hike in prices. He said he had registered his shop with GST and he hoped it would all work out fine.
Another mobile shop off 18th June road was quite crowded and Rahul, who was on the counter, said the principals had decided to pay the difference on the stocks to him. Vishal Lobo the owner said Samsung had agreed to help him with his losses and so did Vivo but there was silence from the others. He said that with GST the online business would slump because the online prices would now be similar to what was quoted at the shop. The taxation rates under GST, he said, would be 5 percent and 12 percent and it remained to be seen how it all worked out.
A jeweler who did not want to come on record said sales would be hit badly. He said he would get a rebate till December and with this move discounts would reduce and it would be difficult to compete with the international market.
He said, “Foreigners would come to India and buy international brands at a much cheaper price and now that will stop. The domestic tourist will be more circumspect, people will wait and watch. It is not going to be a good experience in the short term, let’s see.”
Attempts to talk to a retailer in computers and a restaurant proved disappointing as they preferred to say they would wait and watch and then give a reaction.
