In a bid to benefit consumers following the recommendations made by GST Council of reducing GST on more than 100 items w.e.f 27.07.2018, the Central Government has decided to initiate anti-profiteering measures against the traders if such benefit was not passed on to the consumers.
On 21 July, the goods and services tax on washing machines, small televisions and air conditioners, as well as other goods, was reduced from 28% to 18%. However, there were questions that whether manufacturers pass on the full benefit to customers or retain some of it as their profit.
Consequent to the above GST rate reductions, the Ministry of Consumer Affairs, Food & Public Distribution has granted permission under Rule 33(1) and Rule 6(3) of the Legal Metrology (Packaged Commodities) Rules, 2011, for making corrections in retail sale price (MRP) by way of stamping or putting sticker or online printing, for declaring the reduced MRP on such pre-packaged commodities. However, the earlier Labelling/Sticker of MRP will continue to be visible.
This relaxation will apply in the case of manufactured/packed/imported unsold stocks where the MRP would reduce due to reduction in the rate of GST w.e.f 27th July, 2018. This relaxation would be applicable upto 31st December, 2018.
In a recent advisory, the Central Board of Indirect Taxes and Customs ( CBIC ) has advised the stakeholders to assist the GST officers in ensuring that the benefit of reduced GST is passed on to the consumers.
“If benefits of reduced GST rates are not passed on, affected consumer(s) may file the application, before the Standing Committee on Anti-profiteering if the profiteering has all-India character, OR before the State level Screening Committees if the profiteering is of local nature,” the Board said.
