Rate cut must be passed on for each packet size, says GST authority

A retailer of Maggi had alleged that despite reduction in GST, the base price of a 35g pack was increased to bring it at par with the pre-rate change price, including taxes

Companies or dealers may have to cut prices of each stock keeping unit (SKU) of their products to pass on the benefits of any lower goods and services tax (GST) rate.

This comes from an order of the national anti-profiteering authority (NAA) in a case related to a Maggi noodles (Nestle’s) dealer. A retailer of Maggi had alleged that despite reduction in the GST rate from 18 per cent to 12 per cent in November 2017, the base price of a 35g pack, also known as the Rs 5 (MRP) pack, was increased to bring it at par with the pre-rate