Finance secretary says onus of passing on the benefits is on companies
Companies, including FMCG firms, might be prosecuted if their retailers do not immediately cut the prices of products whose goods and services tax (GST) rates have been slashed.
Union Finance Secretarysays the retailers or the companies cannot continue with higher prices on grounds that the old stocks have not been exhausted.
“We have made provisions for the companies to claim the difference from the government as input tax credit. But I am not willing to accept their argument to postpone passing on the benefits to consumers till they have disposed of their old stocks.”
According to him, the new prices should be effective from November 15.
The GST Council in its last meeting this month cut the tax rate on 176 items from 28 per cent to 18 per cent and on two to 12 per cent.
There was a huge demand to make these cuts. Speaking in a Doordarshan interview in which Business Standard was present, Adhia, who is also revenue secretary, said it was inconceivable that a 10 per cent cut in the price of, say, detergent products should be minuscule for consumers.