Although GST has been imposed on only some of the commodities at Khadi Gran Udyog they have on offer, the two outlets in the state are yet to receive an official directive regarding tax rates. Their account books, in the meanwhile, indicate a significant dip in sales as the government employees manning the shops are confused about which items fall within the tax bracket and which do not, according to the informed sources.

“Earlier, items at khadi shops were sold at maximum retail price (MRP). Now, with the advent of GST, we are yet to gain clarity on tax rates and exemptions. In all of this, there are also rumours that items sold at Khadi Gram Udyog stores may again become tax free,” an employee said. While the shop garnered 1 lakh through sales for the month of June, it has managed to make just 30,000 in the month of July, he said.

“Items such as herbal soap, sarees and facepacks have come under the tax ambit. A saree has now become expensive by more than 400-500 after tax. This has affected sales as well,” a worker said, adding that no fresh purchases have been made so far as the stores are still clearing pre-GST stock.

“We don’t know if we have to levy tax on the old stock. There is also speculation among shopkeepers that once registered with GST, a minimum value of tax has to be paid whether sales are made or not.”

Despite repeated attempts, officials from the khadi and village industries commission were not available for comment.

– Apparel and Textile News, Apparel Talk, Indian Apparel