Traders Welcome GST Rate Cut, Raise Concerns Over Refunds

New Delhi- 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.

During an interaction with traders at Totaram Market in Tri Nagar, Delhi Chief Minister Rekha Gupta said,“Diwali has arrived early for traders.”

She also termed the tax reform a“gift” from Prime Minister Narendra Modi.

Gupta urged people to buy swadeshi goods to strengthen the country's economy.

Delhi Development Minister Kapil Mishra also visited Bhajanpura Market as part of his“Dhanyawad Yatra” along with local MLA Ajai Mahavar.

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