Brands are slow in passing on benefits of GST rate reduction to consumers who want profiteering probes to look beyond the individual line item complained upon, said a survey report. Local Circles conducted a consumer survey to ascertain their perception of GST rate reduction benefits that have been passed on to them.
“Only 12 per cent in response said that full benefits of lower tax are being passed while 23 per cent said only partial benefit is being passed. 47 per cent said no benefits of the lower tax rate are being passed on as the base price of the products has been increased. 18 per cent were unsure about it,” it said.
Also read| Govt may face another hit on fiscal deficit front; pending GST compensation likely to double
The Goods and Service Tax (GST) was introduced with the purpose of simplifying the tax structure in the country and services instead of having to deal with multiple taxes. Since then, the GST Council has met various times and reduced the applicable GST on various products and services.
The survey said the sole purpose of these rate reduction was to make the purchase that much more affordable for the consumers but many corporates were accused of not passing on the benefits of the GST rate reduction to the consumers and instead profiteered from it.
Source: Financial Express