GST cuts not passed to consumers in Hyderabad stores

HYDERABAD: The Centre’s directive to pass on Goods and Services Tax (GST) rate cuts to consumers from September 22 has seen little implementation on the ground. Most supermarkets in Hyderabad and across Telangana continued to sell daily essentials and other items at old prices.

Shoppers who questioned the staff were told that old prices would continue until existing stock was cleared. Items such as milk products, bread, clothes, soaps, toothpaste and pulses were expected to see lower prices under revised GST slabs, but the relief did not reach buyers.

The Union government had instructed traders on September 9 to place reduced-price stickers next to old Maximum Retail Prices (MRPs). However, supermarkets and grocery shops largely ignored this rule.

A grocery trader in Mettuguda said, “We know GST has been cut, but we will sell at old rates until new stock comes.” Another retailer argued, “We purchased stock at old prices. If we reduce the price now, we will suffer losses.” A utensil seller added, “When there are no bills, what is the meaning of GST? Our prices never change.”

At railway stations too, food vendors did not pass on GST benefits to consumers.

Marginal relief, selective compliance
At a leading supermarket, a consumer found no difference in price for Tulips wood toothpicks, which continued at ₹45 despite 18% GST. Priya groundnut oil dropped marginally from ₹156 to ₹152 a kg, though the GST rate had been reduced from 12% to 5%. Similarly, organic Himalayan salt remained at ₹150 a kg before and after the rate change. Cement prices also remained unchanged. Packaged meat prices were lowered, but dairy items such as paneer continued at old rates.

Vehicles and medicines see benefit
Automobile showrooms passed on GST cuts immediately, with discounts offered on cars and two-wheelers. In some cases, buyers who had booked vehicles earlier also received the benefit. Large medical shops reduced prices of medicines, including heart-related drugs, where a 10-tablet strip that cost ₹480 earlier was sold at ₹420 after September 22.

Billing unchanged despite GST cut
In Karimnagar, an Andhra Jyothi reporter purchased the same items on September 21 and 22 at a mall. While the GST breakup differed, the total bill remained unchanged at ₹351.64 on both days. Hotels reduced room tariffs, with GST on rent falling from 12% to 7%.