Govt to keep a 'close watch' on prices after GST cuts

Indirect tax board to take up the issue with industry bodies if tax benefits not passed on

- Gireesh Chandra Prasad

Indirect tax authorities will closely monitor prices after the goods and services tax (GST) rate cuts kick in on 22 September to ensure consumers get the full benefit, according to a top official.

"We'll be keeping a very close watch on the price trends and wherever we receive any complaint from any segment that the tax benefits are not being passed on by the industry to consumers, we will take up with the appropriate industry bodies to ensure that benefits are passed on to the ultimate consumers," Sanjay Kumar Agarwal, chairman of the Central Board of Indirect Taxes and Customs (CBIC), said in an interview to Mint.

The GST Council on Wednesday retained two GST slabs of 5% and 18% and abolished 12% and 28%, reducing the rate on several categories of goods.

The GST regime had an anti-profiteering authority the last time rates were revised, but it was dissolved in December 2020. However, revenue secretary Arvind Shrivastava, during the media interaction after the GST Council meeting, said the value of the complaints raised was small compared to the overall impact of rate cuts. He also said that industry groups have promised to pass on the benefit to consumers this time as well.