Aware of this catch, the government is ready to ensure that the GST deduction will reach the last customer.
Also Read: Roti, Clothing Aur Makan: The common man of India got a Diwali gift
What is the government doing to make sure the GST reliever reaches the common man?
In coordination of the Ministry of Finance, other ministries, the GST will closely monitor the implementation of the reduction rates so that the common man should be comforted, Finance Minister Pankaj Chaudhary said on Thursday. “The government is serious about the benefits that reach the common man (every deduction) and we will work with the concerned ministries and monitor it,” Chaudhary told ET in an interview. The government will launch a campaign for this purpose, he said.
Senior government officials told the TOI that indirect tax officers are collecting the prices of current goods and services and will be compared once a new GST rate is started. “” The transmission of deductions may take a few days, but the government is watching. “It is to make sure that customers are getting benefits during Navratri, and an official referring to the cutoff date by Prime Minister Modi told TOI. The Finance Ministry has conveyed this message to some of them, allowing the law to use anti-government trends, but the industry wants to make a profit in the industry.Also Read: New GST rate list 2025: Complete list of items with modified rates
Commerce and Industry Minister Pye Goyal said that he has asked the industries to give the benefit of low goods and service tax (GST) to the consumers and the industry is committed to doing so. “My request to all of you, please make sure that every rupee saved by GST deduction has been paid to the customers. In many cases, the benefit of this new rate, I think there are almost 5% of all the products in our industry. This is a huge savings, we know that we all know,” We all know, “we all know.
These low rates will support demand and industry growth. The ratio of operations in the country will increase by the zap and the boundaries. Due to the high demand, a large number of investments, more employment and the virtue of growth will increase one foot and a big boost, “he said,” he said, “This” Diwali gift “will contribute to the lifestyle and good quality of the citizens.
Speaking to the News Agency AN, Goel said, “We have received assurances from all sectors of the industry, different levels, big and small, we will give the whole benefit to the common man. We are sure they will meet our expectations.”
He said, “So I think they will definitely go ahead and we have asked for commitment from everyone we have received. Of course, there are mechanisms to monitor it and the consumer transaction department and finance will definitely join the process,” he added.
Also Read: GST: Once branded Gabbar Singh tax, it appears to be good and simple.
The states and the central indirect taxes (CBIC) and custom will be involved in the industry. “… Last, the industry has gone on the benefits of cutting prices and we have seen that many industries have come out and are committed to broadcasting this benefit … We will be busy with the industry and make sure that the customers get benefits,” Revenue Secretary Arvind Srivastav said at a press conference.
Many companies, including Amul, Mondez, Godrej Consumer Products and Colgate, have promised to ensure that the shopkeepers have a cut, the TOI said. Meanwhile, the industry chambers urged companies to lower prices in accordance with tax deduction. FICCI’s senior vice -president Anant Gonka said the lobby group would work with your members to make sure that the benefit will benefit the customers. CII Director Chandrajit Banerjee said that he would do a faster job of reducing industry and increasing demand and creating employment. “Assocham encourages customers to go to these benefits, which will increase the use and thereby increase a virtue of financial cycle,” said Sanjay Nair, chairman of the industry board.
Why concerns about GST infection?
When the GST was introduced in 2017, the government had imposed a profit-anti-profit provision, which forced industries to gain benefits. While the anti -profit agency is scattered, the provision is still in the law. Revenue Secretary Srivastava suggested that in the early years of GST, 74 cases (%1%) were registered, pointing out that the industry was widely suited.
Significantly, in 1 in, the National Anti-National Profit Authority said that India’s largest consumer goods company Hindustan Unilever Limited (HUL) did not get a profit from GST. However, the authority considers the increase in grammar enhancement implemented by the company. In 2, the Authority had ordered FMCG Major Nestal to deposit Rs 73.5 crore to the Consumer Welfare Fund due to lack of deduction of GST rates to the customers.
Grant Thorneon India partner and tax debate management leader Manoj Mishra said that the absence of a profitable watchdog is a lot depends on the competition. “For customers, the rehabilitation of the required items in the ITC with the availability of ITCs should provide a visible price exemption. However, for the services, 5% of the arc can be relaxed by considering limited ITC qualifications.
According to TOI reports, the government has expected to take care of the prices in most sectors that the industries have admitted that those who do not reduce the benefits will switch to the Those who reduced prices. However, there are some areas, where cartelization is alarming and insurance, where the industry is nervous about withdrawal of input tax credit, not all profits can be transferred to customers. An official told TOI that the public sector insurance companies, which include four general insurance companies and Behmoth LIC, have been asked to give customers a full advantage of getting a discount, making it difficult for private players to avoid doing so. The KVT Council, led by Finance Minister Nirmala Sitharaman, has decided to exempt the life and health insurance purchased by the GST from GST, which is currently attracting 18% tax. GST on cement decreases from 28% to 18%, the prolonged demand from this sector, the cost of each bag is expected to drop to Rs 25 to Rs 30, the JM Financial estimates.
Different industries react differently to tax changes. FMCG companies can quickly get some benefits to maintain volume-moving business, while luxury goods, branded goods or electronics area may prefer margin protection. Even in an industry, big players with pricing power can behave differently than small, margin-sensitive companies. This controversy makes it difficult for the government to implement a one-shaped-fit-fit-serving mechanism.
At the time of lower rates, the market is often filled with existing stocks purchased at the GST rate. Retailers and wholesalers can choose to sell these list at pre-existing prices to preserve a profit margin or to avoid accounting complications. Some input tax credits allow to claim old stock due to government rules, but the process is not always intact. As a result, the latest list in business can delay the reflection of low prices to the cycles – which may take weeks or months.
For many customers, the price tag is the only reference point and some track tax rate changes. Lack of awareness of lack of awareness. Also, in the B2C retail space, MRPs are printed and even if the tax liability is reduced, sellers can continue selling on the same MRP. Unless the manufacturer is communicating immediately and clearly, its advantage can never be reduced.
Every day from snacks and confectionery to shampoo and tea, the manufacturers of the staples told ET a day before the announcement of the GST cut, they were working to restore grammar into a small pack of 5 and 10 rupees as they could not reduce those prices. Vipul Prakash, CEO of DMM Foods, who sells cracks salty snacks, told ET, “Our products come to a fixed cost of Rs 5, and changing the price is impractical.” “However, we will increase the per pack wherever possible.” For the last two years, this will be the opposite, when companies have been compressed to collapse – reducing weight or quantity in the pack – prices in raw materials and packaging during prices.
The GST rationalization of 2025 is a huge step towards simplification and financial stimulation. But without the effective implementation mechanism, consumer awareness and support support, the actual broadcast of these benefits can be partial or delay.
(With the input of TOI)
As a source of reliable and reliable news.