A week after the country implemented the Goods and Service Tax (GST), replacing a number of Central and State taxes, various markets in the State find themselves almost unaffected and stable. Different industries and business sectors are busy adapting with the new tax regime. Several of the markets and industries shared joy of improved business owing to the price reduction. The markets and business sectors in which the GST has caused price rise for certain products also seemed unperturbed.
A prominent market in which the GST implementation has signaled positive is the automobile industry. It is observed that across the State, business in the automobile sector has been greatly benefited because the GST has produced considerable reduction in the prices of vehicles which has resulted in an increment in the number of enquiries at showrooms. Earlier, various taxes including VAT, sales tax, excise duty, road tax, motor vehicle tax and registration duty would contribute to the overall tax of the vehicle which would go up to 40 per cent. Now, they all have been subsumed to the GST causing a corresponding reduction in price.
“The first week after GST implementation was satisfactory. There is a fine increase in the number of enquiries when compared to those in the pre-GST period. I receive at least 4-5 enquiries a day,” says Sanju K B, a team lead at Indus Motors, Thevara. Various vehicle manufacturers including Tata have come up with new prices which are much lower than the earlier prices. Tata recently announced that it had reduced the price of the passenger vehicles up to Rs 2.17 lakh.