GST Overhaul: Industry to Address Non-Reduction in Prices Post-Tax Cuts

The Central Board of Indirect Taxes and Customs (CBIC) is set to tackle complaints from industry bodies about the non-reduction of goods' prices following the implementation of reduced GST rates starting September 22, according to Sanjay Kumar Agarwal, the CBIC chief.

The GST Council, composed of the Centre and states, recently opted to cut tax rates on 375 items, simplifying the structure from four slabs to two. From September 22, most commonly used goods will face a 5% GST, whereas all other items will see an 18% tax, marking the most significant reshaping of the Goods and Services Tax since its inception in 2017.

Agarwal expressed confidence that the industry would transfer GST benefits to consumers, as observed in previous years. The GST law mandates businesses to pass on rate cut advantages, with an anti-profiteering authority established to handle complaints. Despite past mechanisms, few profiteering cases were lodged, leading to confidence in the industry's responsiveness this time.

(With inputs from agencies.)