Even three days after the recent GST rate cut came into effect, many retailers across the city are yet to pass on the benefits to consumers. The worst-affected are grocery buyers purchasing essentials like bread, cooking oil and paneer, along with medicines and stationery items that were shifted to lower or nil tax slabs.
Essential Items Still Sold at Old Prices
For instance, a 100% whole wheat bread priced at ₹50 should now be sold at Rs 47.50 after being moved from the 5% slab to 0% GST. However, prices remained unchanged in most outlets as of Wednesday. Similar issues were observed with commonly used medicines such as BP tablets, inhalers and several stationery products that were recently shifted to 5% or nil GST slabs.
Retailers Cite Old Stock and Confusion
Small retailers attribute the delay to unsold old stock and a lack of clarity from distributors.
- G R Provision Store explained: "We have about 280 units of soap in stock that were purchased under the earlier tax regime. They now fall under the 5% slab, but we cannot sell them at the reduced price. Customers will benefit only when we purchase new stock."
- R K R Fancy and Stationery Outlet added: "The price reduction depends on the brand. Some companies may raise base prices to offset the GST cut. We are waiting for revised MRP lists from distributors."
Consumers Demand Clarity
Consumer activist T. Sadagopan criticized the government for not issuing clear guidelines on how existing stock should be sold. "Some retailers have reduced prices, while others are raising the base price of products to keep the MRP unchanged. This defeats the purpose of the GST cut," he said.
Bigger Outlets Lead with Discounts
Unlike smaller shops, larger retail chains have already started extending partial benefits to customers.
- A leading grocery chain in T Nagar offered a 12% discount on toothbrushes and 2-5% discounts on other products to reflect the GST revision.
- Some pharmacies have also updated their billing, with inhalers dropping from Rs 150 to Rs 120, according to residents.
Traders' Body Seeks More Time
According to the Tamil Nadu Vanigar Sangangalin Peramaippu, small retail outlets and local vendors will need at least another week to fully adapt. "Distributors and retailers must revise stickers, understand the new rates and prepare before passing on the benefit to consumers," the association's president said.
What This Means for Consumers
While large-format stores and some pharmacies have started passing on GST savings, small retailers are still holding back. Until stock turnover happens and revised MRP lists are shared by distributors, consumers may continue to pay old prices despite the tax cuts.
CAclubindia
