GST hits Pimpri electronic goods mkt
The market has over 150 shops selling electronic items such as mobile phones, TV sets and music systems. The market’s daily turnover amounts to crores of rupees
Pimpri: The famous electronic market in Pimpri Camp is likely to lose its ‘cheapest electronic market’ tag, thanks to the Goods and Services Tax (GST) that was introduced by the Central government from July 1.
Earlier, traders in this market used to sell electronic items at one of the cheapest rates as compared to other markets, mainly due to the selling of items without bills, thus evading taxes. However, under the new tax structure, there is no scope for such practices.
The market has over 150 shops selling electronic items such as mobile phones, TV sets and music systems. The market’s daily turnover amounts to crores of rupees. In all, 30 big mobile phone shops sell items worth Rs 5 lakh each daily, while smaller shops record transactions of around Rs 3 lakhs each daily. Shop owners used to sell electronic items, mainly cell phones, at a cheaper rate if consumers did not insist on the cash memo. Thus, the government used to earn nominal tax revenue from this market due to the mutual understanding between traders and consumers.
Insiders in the market said, “People from across western Maharashtra visit the electronic market in Pimpri camp as they get the cheapest rate. However, this will become a thing of past now as GST is collected from the supplier due to the provision of input tax credit. As the GST on the product is already paid by the supplier, traders have to recover it from consumers. Under the new tax regime, the shop owner can reduce the price of an item by reducing his profit margin, which will not reduce the price of a product significantly.”
Selling of goods without bills can be easily detected now. The Pimpri market also has several wholesale electronic shops selling many brands, where retailers from other cities purchase items. Black marketing of electronic goods is likely to reduce significantly under the new tax system.
‘Misleading information being spread about GST’
“Misleading information is purposely being spread about the Goods and Service Tax (GST) through social media,” said Revenue and Forest Minister Sudhir Mungantiwar. He was speaking on the sidelines of the inauguration of a state-wide tree plantation drive.
Mungantiwar said a negative environment is being created around GST, which is misleading common citizens.
He appealed to people to not follow such posts and asked them to refer the communication shared through the government channels. Mungatiwar was in the city to inaugurate a state-wide tree plantation drive, during which four crore saplings will be planted. MLA Medha Kulkarni, Additional Principal Chief Conservator of Forest Nitin Kakodkar, Chief
Conservator of Forest (Pune Region) Vivek Khandekar, Deputy Conservator of Forest Ranganath Naikade were present.
Mungantiwar said in last three days, 1.44 crore trees have been planted. This tree plantation is being tracked through GPS.
He said he himself is taking updates pertaining to the progress of the plantation drive every hour. He added that so far, around five crore citizens have registered themselves on the portal for participating in the drive.
The minister said the target of planting four crores trees will be achieved within a week. He said it is indeed an encouraging thing that people are voluntarily participating in the drive.