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Will act against traders inflating prices post GST: Kerala govt

Many traders are making profits by imposing GST on pre-GST price, the state Finance Minister said

Press Trust of India  |  Thiruvananthapuram 

GST standard rate should be 26%: Thomas Isaac

The government on Thursday said stern action will be taken against those hiking prices of commodities following the launch of Goods and Services (GST).

Chief Minister said the government viewed the present increase in prices of commodities very seriously.

The government has already established a mechanism to file complaints on increase of prices of commodities, he said in a press release.

He added that has already raised the issue before the Centre.

Earlier, state Minister T M Thomas Isaac urged the central government to take steps to check tendency in trade and business to make undue profits following the launch of the

wants the Centre to set up an anti-profiteering authority at the national level, he said.

In a letter to his counterpart at the Centre, Arun Jaitley, Isaac claimed that though prices of many commodities had come down due to GST, the consumer was not getting its benefit.

Many traders were making profits by imposing the on the pre-price, he said, adding hotels and restaurants were doing this the most.

"It has been noticed hotels and restaurants and outlets selling daily consumables instead of giving discounts because of reduction of or at least keeping price at the same level had increased the prices," he alleged.

"The hotel and restaurant industry has added 12-18 per cent GST on the price of food fixed in the pre-GST scenario," Isaac said.

"This has resulted in a drastic increase in the cost of food items creating a negative impression on GST among people," the minister said.

Isaac felt that detailed matrix on commodity-wise tax incidence would enable the state to take up an awareness campaign, which would go a long way in controlling unreasonable pricing and avoiding resentment among people.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, July 06 2017. 11:25 IST