GST Slabs Simplified: Major Tax Cut Rethink Aims for Consumer Relief
The CBIC, led by Chief Sanjay Kumar Agarwal, plans to address concerns over non-reduction in goods prices post-GST rate cuts, effective September 22. Recent GST Council decisions reduced tax slabs and rates, anticipating that competitive market forces will benefit consumers. Historical data suggests industries often pass savings to buyers.
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The Central Board of Indirect Taxes and Customs (CBIC) is determined to address industry concerns over price stability following significant Goods and Services Tax (GST) rate cuts. Sanjay Kumar Agarwal, the CBIC chief, emphasized action on complaints relating to non-reduction in prices once the new rates take effect on September 22.
Recently, the GST Council, comprised of central and state representatives, approved a resolution to slash tax rates on 375 products and simplify the tax slab system from four to two. The adjusted rates will see a 5% GST on most common-use goods and an 18% rate for others, simplifying the tax landscape significantly.
Agarwal expressed confidence that industries will reflect these changes in consumer pricing, citing historical precedence where industries benefited consumers post-GST cuts. Though a complaint mechanism exists, instances of profiteering claims were minimal in past years, indicating positive industry compliance with rate changes.
(With inputs from agencies.)
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