FMCG companies
GST has come into force as the largest reform of the country. The prices of more than 90 percent of the country’s products have been cut in tax. Now the biggest question is when the price cut will happen. The news is that the central government will keep an eye on whether companies are really transporting the benefit of tax deduction to the customers or keeping the benefits with them. Two people associated with government discussions quoted media reports as saying that the government would keep “prudent monitoring” on the implementation of tax deduction, but will avoid any kind of intervention of the administrative system. If profiteering comes from the corporate, then the government will not hesitate to implement a formal system.
The Center hopes that companies will follow their public commitments to lower prices, but if consumers do not get relief, then the option of formal information system has not been denied. Tax deduction has been made by Prime Minister Narendra Modi in the Independence Day speech after the promise of tax relief. Finance Minister Nirmala Sitharaman has committed to ensure that its benefits reach homes.
The government will keep a close watch
The media report quoted two sources as saying that all government departments are conscious of ensuring consumer benefits and will monitor the prices. He further said that instead of using any administrative power with the government, the government will have “vigilance and soft accents” instead of using any administrative power. He said that if a case of profiteering comes up, the government can call the Competition Commission of India (CCI) at any time. However, doing so is not being considered at the moment, and the indications from the industry show that the prices of GST rate cuts will be reduced to reach the consumers.
Anti -profiteering authority
In the early days of GST, there was a formal system to ban the profit grabbing of tax deduction by companies; However, this system ended in April this year. The main bench of the GST Appellate Tribunal will continue the decision on previous matters, but no authority is accepting any new complaint. According to sources, it is impractical to make a short -term regulator to monitor profiteering as it will be difficult to end later.
Sources said that to ensure that retail sellers should reach the benefit of tax deduction and users, industries have been advised to take steps, including the dealers to ensure that the price incurred from consumers reflect tax deduction. He also has the option to install stickers about revised price. These steps are expected to ensure that retailer tax deduction benefits to consumers.
Price Cut Ed
By the way, companies have not broken the confidence of the government. Companies have made several announcements of price cut after the GST cut through statements and advertisements in newspapers. Several companies like Life Insurance Corporation of India, United India Insurance Company, New India Assurance Company, Cement Manufacturer Nuvoko Wistas Corporation Limited, Sewi Machine Manufacturer Usha, Air Conditioner Manufacturer, Health Service and Pharmaceutical Company FDC, Tire Manufacturer MRF Limited and Chickery make up GST to make GST cuts. The cut has advertised.
Chandrajit Banerjee, Director General of the Confederation of Indian Industry (CII), said in a media report that the industry body is encouraging its members to ensure that the benefit of tax deduction is given quickly and transparent. Banerjee said that we are interacting with our members of various fields to revise the price list, reorganize the supply chain and update retail shops with our members of various fields to see customers see low rates without any delay. Banerjee said that giving tax benefits to families will increase demand, consumer confidence will be strong and growth will also increase.
Finance Minister’s Stand
After the GST Council announced the ending of tax slabs of 12 per cent and 28 per cent on 3 September and offering tax deduction on several products and services, Finance Minister Sitharaman said in an interview on 5 September that their next big exam would have to be ensured that the business tax rates should be reached to the common man. Tax relief includes packaged food, consumer electronics, personal health and life insurance policies, hotel housing, automobiles, cement, television sets and kitchen and tableware. Experts said that it was said in the government order of 18 September that it is not mandatory to install revised MRP stickers on stock without selling before 22 September, but business is encouraged to do so to maintain transparency and avoid confusion in consumers.