Thiruvananthapuram | The benefits of the recent GST rate cuts have begun to reach consumers in Kerala, though the price reduction is not yet uniform across all outlets.
While small provision stores, on which a vast majority of people depend, continued to sell essential commodities at the old prices, supermarkets, malls and other shops with GST registration reportedly offered goods at reduced rates.
Medical stores and electronics shops also provided items at the revised lower prices.
According to sources in Vyapari Vyavasayi Ekopana Samithi, it would take one to two weeks for small traders in the state to implement the new GST reforms and sell items at reduced prices.
The Samithi is an umbrella organisation of traders in Kerala.
Santhosh, who runs a small provision store in northern Kozhikode, said he could not immediately provide the price reduction as he had already purchased and stocked goods at the old rate.
"If I sell the goods at the new rate from today, I will incur a loss. I will provide the reduced prices once the fresh stocks arrive," he said.
An employee of a 24x7 medical shop in the city said they started selling medicines at reduced tax rates from this morning.
"Tax has been reduced for all medicines as per the new update. Under the revised GST, bills for all medicines are about five per cent lower," he said.
The Kerala Co-operative Milk Marketing Federation Limited, popularly known as MILMA, announced that the prices of various dairy products, including ghee, butter, paneer and ice cream, would be reduced in line with the new GST rates.
Authorities said the revised GST rate of 40 per cent for lottery is effective from Monday.
The Kerala government had earlier asked the Centre and the GST Council to exempt state-run paper lotteries from the higher tax, arguing that they were not comparable to gambling or casino activity.
It also sought more time to implement the new rate, but both requests were rejected.
Sunil, a representative of the Vyapari Vyavasayi Ekopana Samithi, said shops that collect tax directly from consumers could implement the change immediately.
"Small traders cannot immediately provide GST relief because they have already procured goods after paying tax at the old rate. Only those who reduce prices and fix the MRP at the production centres themselves can implement the revised rates from today," he said.
Supermarkets, malls and electronics shops, he explained, could introduce the changes straight away.
"GST registration is mandatory for those with a turnover above Rs 1.50 crore. Such traders can directly collect tax from consumers and implement the reduced rates from today," he added.
However, some supermarkets remained closed on Monday for software updates to implement the new GST rates effective from Tuesday.
A manager of a supermarket in Kochi said goods were sold at the old rate until Sunday evening.
"The specialised software needs to be updated to incorporate the new changes. The new rates for thousands of items need to be entered into the computer system. Therefore, the supermarket is closed on Monday," he said.
He said the new rates would be in place from Tuesday.
State Finance Minister K N Balagopal reiterated that the benefits of GST reforms should reach common people.
He also alleged that necessary studies have not been conducted by the Centre before implementing GST reforms.
The GST Council, comprising the Centre and the states, decided to reduce tax rates on goods and services from September 22– the first day of Navratri.
On Sunday, Prime Minister Modi asserted that the GST reforms would accelerate India's growth story, emphasising that it was a big and important step for 'Aatmanirbhar Bharat', linking a boost to swadeshi products with the country's prosperity.
Addressing the nation on the eve of the auspicious Navratri, which marks the implementation of the revised GST rates, Modi said that swadeshi would strengthen India's prosperity in much the same way it had powered the country's freedom movement.