Govt asks firms to share revised prices after GST reductions for consumers

The Central government has asked businesses to display the tentative price list of consumer goods, including cars and other products, highlighting the Goods and Services Tax (GST) reduction, The Economic Times reported.

 

The said list will be displayed on the official GST website, thereby helping consumers to see the relief they can expect as the next generation GST reforms are set to kick in on September 22.

 

The Central Board of Indirect Taxes and Customs (CBIC) held a meeting with representatives from business chambers, industry bodies, and ministries of heavy industry, consumer durables, agriculture, and pharma on Wednesday. The detailed meeting aimed to ensure smooth implementation of the rate cut announced at the GST Council meeting.

 

Citing officials, the report added that businesses have been asked to show both pre-and post-GST rates at all retail stores or dealerships to help consumers.

 

On September 3, Finance Minister Nirmala Sitharaman announced a major overhaul in the GST regime, bringing much relief to the common man. The GST regime will now have two tax slabs—5 per cent and 18 per cent, with a 40 per cent special slab for super luxury and sin items.

 

As the government hopes for 90 per cent of the rate rationalisation to be passed on to the customers, most industries have agreed to pass on the benefits of the rate cuts to consumers, which is likely to bring a reduction of at least 10 per cent in consumer durables and 12-15 per cent for automobiles.

 

An official told The Economic Times, "We got a very encouraging response from the industry. While the quantum of benefit may vary from sector to sector, we will work with them to remove any pain points."  ALSO READ | GST alert: CBIC clarifies viral social media claims about transition perks

FMCG companies ask govt to monitor prices

 

Executives from fast-moving consumer goods (FMCG) companies asked the CBIC chairman to monitor the prices after the new GST reforms kick in to ensure the benefits are passed on to customers, Business Standard reported on Wednesday.

 

The executives also urged the CBIC chairman to issue directives to all FMCG firms to ensure the proper implementation of the new rates effectively with proper stickering and revised invoicing, while adding that prices of goods in the market are monitored closely for the next six months.

 

Next-Gen GST reforms to boost consumption: Moody's

 

Business Standard on Tuesday reported that while the new GST rate cuts are expected to boost private consumption, the resulting loss of revenue may exceed government estimates and constrain efforts at fiscal consolidation and debt reduction.

 

A Reuters report, citing Citi in August, noted that if most of the goods are moved to a 5 and 18 per cent slab, it could result in a loss of revenue of nearly ₹50,000 crore or 0.15 per cent of gross domestic product (GDP), thereby taking the total policy stimulus for households in the current 2025-26 financial year to 0.6-0.7 per cent of GDP.