𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫𝐬 𝐕𝐨𝐢𝐜𝐞 𝐂𝐨𝐧𝐟𝐮𝐬𝐢𝐨𝐧 𝐀𝐧𝐝 𝐂𝐨𝐧𝐜𝐞𝐫𝐧𝐬 𝐎𝐯𝐞𝐫 𝐆𝐒𝐓 𝐈𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧

…𝒑𝒖𝒃𝒍𝒊𝒄 𝒆𝒙𝒑𝒆𝒓𝒊𝒆𝒏𝒄𝒆𝒔 𝒉𝒊𝒈𝒉𝒍𝒊𝒈𝒉𝒕 𝒃𝒊𝒍𝒍𝒊𝒏𝒈 𝒊𝒔𝒔𝒖𝒆𝒔, 𝒊𝒏𝒄𝒐𝒏𝒔𝒊𝒔𝒕𝒆𝒏𝒕 𝒆𝒙𝒆𝒎𝒑𝒕𝒊𝒐𝒏𝒔, 𝒂𝒏𝒅 𝒍𝒂𝒄𝒌 𝒐𝒇 𝒂𝒘𝒂𝒓𝒆𝒏𝒆𝒔𝒔 𝒊𝒏 𝒆𝒂𝒓𝒍𝒚 𝒓𝒐𝒍𝒍𝒐𝒖𝒕

By Sonam Choden

The implementation of the Goods and Services Tax (GST), which was rolled out on January 1, 2026, has generated a range of public responses, particularly around how the tax is being applied in everyday transactions. While the reform is intended to establish a more transparent and uniform taxation system and streamline revenue collection, many consumers report that its early rollout has been marked by confusion, inconsistent pricing, and uncertainty.
Several consumers say GST is being charged even when shopkeepers do not appear to be fully registered under the system, highlighting a disconnect between policy intent and ground-level practice. These experiences point to broader challenges related to compliance and enforcement during the initial phase of implementation.

A resident of Thimphu expressed frustration over the lack of transparency in billing, stating, “Some shops tell us to pay GST, but when we get the bill, there is no Taxpayer Number (TPN) on the receipt to show they are registered.”

Such instances raise concerns that some businesses may be collecting GST without proper authorization or accountability. For consumers, the absence of clear registration details on receipts makes it difficult to verify whether the tax being charged is legitimate, contributing to mistrust in the system.

In addition to registration concerns, confusion has also emerged around the application of GST to items that are officially exempt. Tshering (name changed) shared her experience with essential hygiene products, stating, “Pads are supposed to be exempt from GST, but some shops still include it in the price. When we ask about it, the shopkeeper says it won’t be charged, but in the end, it is still added to the bill.”

Her experience highlights the practical difficulties consumers face in determining which goods should be taxed and which should not. It also reflects inconsistent practices among businesses, some of which may misunderstand exemption rules or fail to apply them correctly.

These inconsistencies have left consumers uncertain about whether price increases are justified or incorrectly attributed to GST. For many, the lack of clarity at the point of sale has made it harder to distinguish between lawful tax charges and pricing decisions made by individual retailers.

Beyond these enforcement and compliance challenges, there is also a growing public demand for greater awareness and education about how GST works. A resident from Paro emphasized the need for clearer and more proactive communication from authorities, stating, “Many people don’t understand how GST works or which items are exempt. It would help if the authorities could run more awareness programs to educate the public and explain how to check if a shop is properly registered.”

This view reflects a broader sentiment that consumers need better access to information in order to protect themselves and understand their rights. Awareness of GST provisions, exemptions, and verification mechanisms appears to be uneven, particularly among ordinary shoppers who rely on shopkeepers’ explanations.

Public confidence in the system is closely tied to the extent to which citizens feel informed and able to question or verify tax collection practices. Without clear guidance, consumers say they are often unsure whether to challenge questionable charges or accept them as part of the new system.

Similarly, another resident in Thimphu pointed to perceived increases in the prices of daily commodities following the introduction of GST, remarking, “Everywhere you go, prices are higher now. Shopkeepers blame GST, and we, the consumers, are the ones who end up paying more. The system was supposed to make things fair, but it feels like everything has become expensive.”

This sentiment reflects a common perception among consumers that GST has indirectly contributed to rising costs, particularly for essential goods and services. Whether these increases are directly linked to the tax or to pricing adjustments by businesses, consumers say the impact is being felt at the household level.

Together, these perspectives illustrate the everyday realities faced by consumers during the early stages of GST implementation. While the reform is aimed at creating a modern and equitable taxation system, current experiences of unclear billing, inconsistent application of exemptions, and limited public understanding underline the challenges of translating policy into practice.

The public response suggests that regulatory oversight and consumer education will be central to the success of GST. Strengthening mechanisms that allow consumers to verify registration, providing clear information on exemptions, and ensuring businesses comply with billing requirements are seen as key steps in reducing confusion and mistrust.

As GST continues to take effect across the country, consumer experiences indicate that the effectiveness of the reform will depend not only on its legal framework but also on how consistently it is implemented and how well it is understood by both businesses and the public it is designed to serve.

Meanwhile, the Department of Revenue and Customs has notified consumers that not every shop or service provider is authorised to charge GST. Only GST-registered businesses are permitted to collect GST.

Consumers are advised to ask for the business’s GST registration certificate and always request a proper GST tax bill. The bill must clearly display the GST Registration Number (GSTIN), and GST must be shown separately at 5 percent.
Consumers are also encouraged to report any doubts or irregularities to the DRC.