New Delhi : The Centre has directed businesses to display tentative price lists for goods, including cars and consumer durables, to showcase the price reduction of the Goods and Services Tax (GST) rate reforms.
These comparative price lists will be uploaded on the GST website to help consumers to see the relief they can expect as the new two-slab regime takes effect on September 22, according to multiple reports.
Government has announced a major overhaul in the GST regime with primarily two rates- 5 per cent and 18 per cent, along with a 40 per cent rate for luxury and sin goods.
Further, retailers and dealerships are required to display both pre- and post-GST rates at their stores to ensure consumer transparency.
The Central Board of Indirect Taxes and Customs (CBIC) held a meeting with industry associations and ministries of heavy industry, consumer durables, agriculture, and pharma to ensure smooth implementation of the rate cut announced at the GST Council meeting.
Industries have reached a consensus to pass on the benefits of tax cuts to consumers, with consumer durables projected to decrease by at least 10 per cent and automobiles by 12–15 per cent.
Fast-moving consumer goods (FMCG) firms have urged the CBIC to implement stringent monitoring measures to stop companies from withholding benefits.
They 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.
Food inflation is expected to fall 25–35 bps in the next 6 months, as prepared meals, oils, bread and noodles turn cheaper due to drop-in rates of butter and vanaspati.
Core inflation could ease 30–40 bps, driven by lower rates on soaps, toothpaste, household appliances and medicines.
Bank of Baroda’s research firm forecasted that India’s GST reforms could trim headline inflation by as much as 75 basis points and unlock up to Rs 1 lakh crore in consumption spending.
Also Read : GST Rate Cut Credit Growth to Boost Banks & NBFC Lending
