GST Day 3: Some prices fall, some set to fall while others stand still

The third day of the Goods and Services Tax roll-out saw some companies offering price reductions with some others offering to reduce prices and some others refusing to cut prices.

Leading smartphone manufacturers such as Samsung, Xiaomi, Oppo, Gionee, Intex and Lava said they won't increase prices under GST regime, while some of them said they will absorb the extra cost of implementing GST. Mobile phones attract a 10 per cent duty under the GST regime.

On the other hand, Apple has decided to reduce prices of their iPhones and iPads between Rs3,000 and Rs7,000 under GST.

Among automobile firms, Maruti, JLP, BMW and Toyota have decided reduce prices for their cars, while Toyota has already reduced prices by 13 per cent. Hero MotoCorp has slashed prices of their bikes by Rs400 to Rs4,000.

Maruti has decided to reduce the price by 3 per cent on some models.

FMCG and personal care goods manufacturers such as HUL (makers of Wheel, Rin, Surf Excel, Comfort, Sunlight, Vim, Domex and other products) have announced reduction in prices for some of their products, mainly soaps and detergents.

Despite the price cuts, stock prices of FMCG companies have risen by 3 per cent to 7 per cent during early morning trade on a day when the BSE Sensex ended at 31,221.

Meanwhile, revenue secretary Hasmukh Adhia made a series of tweets from his twitter handle to dispel certain misconceptions about GST.

Myth 1: Do I need to generate all invoices on computer/ internet only.

Reality 1: Invoices can be generated manually also.

Myth 2: I need internet all the time to do business under GST.

Reality 2: Internet would be needed only while filing monthly return of GST.

Myth 3: I have provisional ID but waiting for final ID to do business.

Reality 3: Provisional ID will be your final GSTIN number. So start business.

Myth 4: My item of trade was earlier exempt so I will need new registration before starting business now.

Reality 4: You can continue doing business and get registered within 30 days.

Myth 5: There are 3 returns per month to be filed. 

Reality 5: There is only 1 return with 3 parts, out of which first part is to be filed by dealer and two other parts would be auto populated by computer.

Myth 6: Even small dealers will have to file invoice wise details in the return.

Reality 6: Those in retail business (B2C) need to file only summary of total sales.

Myth 7: New GST rate is higher compared to earlier VAT.

Reality 7: It appears higher because excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now.

Since 25 June 2017, about 2.23 lakh new dealers have entered the GSTN system by filing draft applications of which 63,000 have also submitted full details, of which 32,000 dealers granted fresh registrations also.