Traders across Delhi on Monday termed the new GST rates a festive relief for consumers, even as some associations flagged concerns over refunds and implementation.
The GST Council, comprising the Centre and states, decided to reduce tax rates on about 375 goods and services, from September 22 — the first day of Navaratri.
GST rate on several essential goods and services has been brought down to 5 per cent or even zero.
Life-saving drugs are now tax-free, while other medicines will attract just 5 per cent. For farmers, too, GST has been reduced to 5 per cent or nil.
Educational materials that earlier carried 12 per cent GST have been exempted.
Amit Gupta, general secretary of the New Delhi Traders Association (NDTA), said the move has brought relief to both traders and consumers. “Items like dishwashers that were once a luxury for many middle-class consumers have now become affordable. We are extremely happy. We are also contacting the authorities and, once a date is set, we will start a workshop for our traders in association with the officials,” he said.
Sanjiv Mehra, president of Khan Market Traders Association, said it was a positive step, but pointed to “a lot of implementation-based queries” that still need clarity. “Once our queries are addressed, we will definitely educate our traders.”
Similarly, Suresh Ratan, president of Bengali Market Traders’ Association, said the members were “thrilled” with the changes and had already held awareness meetings.
“Our MLA Parvesh Verma came by today to educate traders regarding the new rules. We have also circulated the details in the form of PDFs for their reference,” Ratan said.
The Federation of Sadar Bazar Trades Association, in a statement, termed the tax restructuring a step that would boost trade and increase the purchasing power of the common man. However, its president, Rakesh Kumar Yadav, flagged concerns about the refund mechanism.
“If you have paid 18 per cent GST earlier and the rate has now been reduced to 5 per cent, you will not receive a 13 per cent refund, but instead, the amount will be adjusted. This is a significant issue for our traders as it may affect our capital,” he said, demanding a simpler and more transparent refund process.
The Chamber of Trade and Industry (CTI) led an awareness campaign at Kashmere Gate Market to ensure the public understands the benefits of the new GST rates.
Its president, Brijesh Goyal, said CTI has created posters with GST charts for over 50 different items, with the previous and current GST rates.
The new rates for all products, except gutkha, tobacco and tobacco products and cigarettes, are effective from September 22 — the first day of Navratri.
