The tax department under the finance ministry will probe all complaints, including industry bodies, relating to non-reduction in prices of goods after the reduced GST rates are implemented from September 22
New Delhi: The tax department under the finance ministry will probe all complaints, including industry bodies, relating to non-reduction in prices of goods after the reduced GST rates are implemented from September 22. The ministry also assured that the industry will pass on the benefits of the GST rate cut to the ultimate consumers across the country, according to a top ministry official.
The statement of the official comes at a time when many companies are reportedly trying to hike prices to offset the GST benefits after September 22, instead of passing them on to you. “We must stay vigilant against such companies that constantly look for ways to loot customers,” said a consumer.
Soon after the announcement of the next-gen GST reforms, the Central Board of Indirect Taxes and Customs (CBIC) chief Sanjay Kumar Agarwal said that the department would take up with industry bodies’ complaints relating to non-reduction in prices of goods after the reduced GST rates after implementation. “Also, there are competitive forces at play in the market, which will bring about price reduction in the hands of the buyers,” the official said.
The GST Council, comprising the Centre and states, last week decided to cut tax rates on 375 items and reduce the number of slabs to just 2 from 4 currently. From September 22, a 5 per cent GST will be levied for most common-use goods and 18 per cent on everything else. “We are confident that the industry will pass on the benefits to the ultimate consumers, and in case there are any complaints received by us, we will take it up with the industry bodies,” Agarwal said.
The CBIC chief also said that even though there was a mechanism to file complaints regarding profiteering, not too many applications were filed with the authority when major rate cut exercises were undertaken in 2017, 2018 and 2019. “That gives the impression that mostly the benefits were passed on by the industry to the end consumers. So, we are not expecting a different situation this time,” Agarwal said.
