Even three days after the GST cut came into effect, retailers deny the benefits to customers across the city. The worst-hit are grocery buyers purchasing bread, oil, and paneer.
For instance, a 100% whole wheat bread costing 50 should be sold at 47.5 after being placed in the 0% GST slab from the earlier 5%. But MRP remained unchanged in most outlets on Wednesday. It has largely been same story for medicines such as BP tablets and inhalers and even stationery items, many of which have been brought to the 5% and nil slab.
City retailers have two excuses: One, old stock that cannot be sold at revised and reduced rates; and two, confusion over the revised rates since distributors had not provided them with the same.
“We have about 280 units of soap left in the stock. They have now been brought under the 5% slab, and we cannot afford to sell them at the revised rate. Consumers will pay less only when we purchase the next set of stock,” G R Provision Store said.
“The price reduction would also depend on the brand. The price of a geometry box of one brand is different from another. We do not know whether the companies would raise the price of the product to make up for the GST reduction. We have to wait until we get the revised MRP rates from distributors,” said R K R Fancy and Stationery Outlet.
Consumer activist T Sadagopan says the govt should have laid out clear-cut guidelines on what to do with the existing stock and to prevent companies from raising the base price of the products. “Some retailers have already brought down the prices, while some are raising the base price of the product to retain the MRP,” he added.
However, at relatively larger outlets, despite distributors not having provided revised MRP, discounts are being offered on products to keep consumers happy. A major grocery chain in T Nagar offered a 12% discount on toothbrushes to match the GST revision on the product, and 2%-5% discounts on most of the products.
“Some pharmacies have also started to sell products at revised rates. Inhaler prices have come down from as much as 150 to 120,” said by a resident. TN Vanigar Sangangalin Peramaippu, a traders’ body, says the small retail shops are the ones who are yet to adapt. President of the body, said vendors and distributors would need at least one more week to understand the revision, revise the rate stickers, and get prepared.
Source #TOI
