The first day of GST indicates difficulties for small firms as most of them report lack of idea about tax implications on inputs and components they are selling. Customers on the other hand, have started to adjust with the higher rates on some of the popular items like movie tickets where the tax rate gone to the peak 28%.
Several small firms and sellers issued multiple bills to the same customer as the commodity they have bought have different tax outgo. Lack of proper idea about the exact tax implication were reflected across businesses.
Bigger entities and that selling high value consumer durables like car and electronics adjusted to the new tax system quickly. Reports from various big sellers shows the firms entering GST platform in the zero hour itself.
Overall, the sellers, service providers and the government officials all acknowledge that India’s most important tax reform in its history will be on track in couple of months.
