Editor’s Note
This article highlights the immediate, positive response from Gorakhpur’s business community to recent GST rate reductions. Local shops are proactively passing savings to consumers, signaling a tangible benefit from the policy change.
Businesses in Gorakhpur Gear Up for GST Rate Cuts
Businesses in Gorakhpur are enthusiastic about the reduction in GST rates and are preparing to pass on the benefits directly to customers. Some are clearing old stock, while others are putting up flex banners to attract customers, announcing that goods with reduced government rates are now available at lower prices in their shops.
Revised GST Rates to Take Effect from Monday
Businesses across various sectors, including textiles, jewelry, electricals, and stationery, believe that the implementation of revised GST rates from Monday will directly benefit customers and boost shopping during the festive season.
Jewelry Sector Perspective
“The new GST rates will make it easier for customers to buy gold and silver. The reduced GST rates on ornaments won’t have a major impact, but the GST reduction on other items will leave people with more savings, which they will invest in gold and silver as savings. The festive season will definitely bring a surge in the market.”
– Sanjay Agrawal, Director, Parampara Gems & Jewels
Textile Sector Perspective
“We are ready to pass on the benefits of the revised GST rates to customers from September 22. The government has reduced GST on ready-made garments up to Rs 2,499 from 12% to 5%, which will definitely give customers a 7% benefit. If someone buys a ready-made garment worth two thousand rupees, they will get a benefit of Rs 140.”
– Hari Agrawal, Chairman, Radha Madhav Wholesale Family Mart
Grocery Sector Perspective
“Consumers are excited about the benefits from the revised GST rates. For the past few years, people have been using dry fruits extensively. Until now, GST on it was 12%, which will be reduced to 5%. This will lead to a 10 to 15% drop in the price of dry fruits and increase its consumption in the market. In addition, consumers will benefit from reduced rates on toothpaste, soap, oil, and ghee. Consumption will increase at both wholesale and retail levels.”
– Nikunj Tekriwal, Grocery Businessman
Electricals Sector Perspective
“As soon as the new GST rates are implemented, customers will start getting goods at lower prices. GST on pressure cookers, batteries, and ACs has been reduced from 28% to 18%. Similarly, GST on various types of utensils, including water bottles, cups-plates, and mugs, has been reduced from 12% to 5%. We are putting stickers with the reduced rates on products available at old prices so that when the revised GST rate is implemented from Monday, customers can know how much benefit they got. I have also made flex banners to inform customers. We will put them up outside the shop before September 22 and provide products to customers at reduced prices.”
– Anand Rungta, Electricals Businessman
Stationery Sector Perspective
“The direct benefit of the central government’s removal of GST on stationery will go to parents and their children. Until now, they had to spend more money on stationery along with fees and other expenses, but now the burden on parents will be reduced. Until now, students and parents had to pay 12% tax on stationery items like notebooks, exercise books, maps, pencils, and drawing materials, which they will not have to pay now. This step will prove helpful in controlling the rising cost of education.”
– Satya Prakash Singh Munna, Stationery Businessman
Real Estate Sector Perspective
“Having two slabs in the revised rates will increase transparency, and GST on cement being reduced from 28% to 18% will reduce construction costs, the direct benefit of which will go to the common man. If flats become cheaper, demand will increase. This is expected to bring a boom in the real estate business. Also, it will be easier for people with lower budgets who want to build their own homes.”
– Shantanu Saraf, Real Estate Businessman
Online Platforms to Offer Benefits
Online platforms like Blinkit and Zepto are also claiming to pass on the benefits of reduced rates to consumers from September 22. They say that those who order goods through these apps will get the benefit of the revised GST rate on them.
Businesses Excited, Preparing to Celebrate with Customers
Businesses are excited about the revised GST rates. Hoping for increased sales during the festive season, businessmen say that on Monday, the first day, they will not only pass on the benefits of reduced rates to customers but will also celebrate with them by cutting a cake. Because this is a gift from the government, and its implementation certainly calls for a celebration.
Need for Curb on ITC Fraud
Chandra Prakash Agrawal, Chairman of Gallant Steel, said that disappointment among taxpayers has increased due to incidents of fraud in Input Tax Credit (ITC). The government should take concrete steps on this. Various suggestions have been given and contact has been made with the government at a personal level, but no concrete action has been taken so far. If the government takes effective steps on this, the morale of honest taxpayers will increase. The implementation of revised GST rates from September 22 will help common consumers reduce their expenses.
