Rollout hitch: 1 in 7 Bengal traders not yet on GST platform

KOLKATA: India may have had its tryst with radical tax reforms on Friday midnight, migrating to a new GST regime, but business in Bengal, as in most other states, may take two weeks or more to fully migrate to the new platform.
On Saturday, most retailers were selling their products at old MRPs. With big local manufacturers saying that GST-compliant billing will start from Monday, most retailers will not get products with new MRPs — in accordance with the GST rates — before the end of next week.
Tax expert Arun Agarwal said consumers should, by and large, go by the MRP while buying products during this transition phase.“It was difficult for producers to start billing according to the new software because at least 150 new notifications were brought in on June 28,” he explained.
What may push back the full rollout of GST further is the fact that more than 40,000 traders in the state — or one in seven — have not yet registered with the GST platform. This process itself may take 10-15 days more, say officials.
The availability of sufficient stock with retailers seems to be the major concern of business houses now.
Emami director Aditya Agarwal told TOI that there was a long chain — from factory to warehouse to distributor and finally to retailer — leading up to the consumer and the entire process takes a little more than a week. “The new products will come from our factories soon and the testing of the new software has started. The last old billing was done on Thursday,” he added.
“The change in tax structure for most of our products is either very little or there is no change at all,” he said. Emami deals with edible oil and host of personal-care products.
Keventer Agro managing director Mayank Jalan told TOI that it would take 10-15 days for its new products to hit the stands. “We are starting new billing on our products from Moday. The retailers will get it after a few days,” he added.
Jalan made it clear that his firm would compensate retailers if the GST rate was higher than the existing tax rate. “Most FMCG companies will compensate retailers in case of a rise,” he added.
An ITC spokesperson said the company was working with its trade partners to ensure sufficient stocks were available to ensure a smooth transition.
Berger Paints managing director Abhijit Roy pointed out that price of paints would not change much. “The tax on paints was more than 26.5% and GST is 28%. Now, with input credit, there may not be too much of a change,” he added.