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On Day 3 of GST, Confusion Rather Than Chaos and Disruption

Image for representation only

Image for representation only

The much feared chaos and disruption predicted by experts has not materialised on day 3 of the Goods and Services Tax (GST) regime.

New Delhi: The much feared chaos and disruption predicted by experts has not materialised on day 3 of the Goods and Services Tax (GST) regime. There is, however, confusion about how to tax various goods and services among retailers and customers.

Consider the following instances that were gleaned by News18:

- Department stores and food retailers have modified their invoices to show the GST amount, but there are a lot of errors in the bills. For instance one consumer was taxed 40% for a can of juice (the actual rate is 12%).

- It is unclear whether alcohol served at restaurants be taxed? Although 'Alcohol for human consumption' has been left out of the GST net, alcohol served at restaurants is a service, which comes under GST.

- If you buy food at a food court in a mall, will it be subject to tax at a rate applicable in a restaurant?

Examples of such errors were brought to light on social media. A Twitterati called Keerthi tweeted a picture of her invoice that included GST and VAT. The latter levy has been subsumed into GST and should no longer be applicable after July 1.

Shivaji Raj Dubey @shivaji_rd also tweeted a picture of his restaurant bill that included both GST and VAT.

first published:July 03, 2017, 16:40 IST