GST rate cut gets overwhelming thumbs up in city

Hyderabad: Many traders and consumers from the city have hailed the GST rate cut that came into effect on Monday. This, they opine, would help a family of four save an average of Rs 500 to Rs 700 every month. Incidentally, the rate cut in the automobile sector has come as a festive boon for those looking to buy new vehicles, whose rates will be reduced by around Rs 10,000. Meanwhile, traders have sought a simplified GST filing process, at least by the next reforms.

They maintained that it is the end consumer who stands to benefit. The General Merchants Association president Sriram Vyas said that the GST reform was a blessing in disguise for both traders and consumers. All items that were in the 12 per cent category have been slashed to five per cent. Not only would this benefit the consumer, but it could also possibly put an end to the tax evasion game plans of traders and thereby boost government coffers.

Meanwhile, Secretary of the Kirana Merchants Association Avinash Devda said that middle class families and the common man will gain on the economic front. This will to some extent also benefit industries that are affected by Trump tariffs. Devda said that kirana items, including dry foods and dairy items, among others, which have been placed in the five per cent per cent slab, will considerably lessen the burden on the middle class. “As per our estimate for a family of four which used to spend Rs 5,000 to Rs 5,500 per month will now be spending Rs 4,200 to Rs 4,500 per month,” he said. However, that would invariably depend on how families spend, he quipped. Devda said that resolving complications in the GST returns would help the business community. Hopefully the next meeting would solve this issue, he said.

A two-wheeler showroom manager from MG Road said that it is the right time for people to buy a new vehicle. The GST slab has been reduced from 28 per cent to 18 per cent, which could translate to a price cut of up to Rs 10,000 depending on the type of vehicle. S Narasimha Chary, a resident of BN Reddy Nagar said that the real impact will be known in the coming months. “Since this is the festive season, we all have additional purchases and, hence, the impact may not be visible. I hope we will see a decent savings with the new GST reforms,” Chary said.