GST Rate Cut | MRP | Company Gain | Customers | 8 Points

Delhi

1. Government’s Intent Behind GST Rate Cuts

   • The Narendra Modi government reduced GST rates on daily-use goods to make them affordable for the middle class and poor consumers.

   • Aim: Boost consumption, lower costs, and improve the ease of doing business.

2. Nirmala Sitharaman’s Assurance on Passing GST Benefits

   • Finance Minister Nirmala Sitharaman assured that industry will pass on GST cut benefits to consumers.

   • She said the government, her department, and the CBIC (Central Board of Indirect Taxation and Customs) will monitor implementation.

3. Post-September 22 Vigilance Drive

   • Strict monitoring of MRP changes post-GST cut starts after September 22.

   • MPs, government officials, and industry bodies will track if companies pass GST savings to buyers.

4. No Anti-Profiteering Watchdog in GST System

   • India currently has no dedicated anti-profiteering body.

   • Earlier, the National Anti-Profiteering Authority (NAA) handled such cases but its role ended in 2022.

   • The task shifted to the Competition Commission of India (CCI), which later stopped accepting fresh cases.

   • Now, cases fall under the GST Appellate Tribunal (GSTAT), but monitoring remains weak.

5. Fear of Companies Profiteering

   • Without a strong anti-profiteering mechanism, experts fear cartelisation by companies.

   • Historically, some businesses have retained GST savings instead of lowering MRPs.

6. Revenue Secretary’s Data on Profiteering

   • Revenue Secretary Arvind Shrivastava shared that since GST’s launch in 2017, 704 profiteering cases worth ₹4,362 crore were filed.

   • Around 60% of cases came in the first four years.

   • Data shows most industries did pass on GST benefits, but vigilance is still necessary.

7. Industry’s Public Commitment

   • Many industry leaders have already announced they will transfer GST cuts to consumers.

   • Finance Minister emphasized increased consumption and rising incomes as natural outcomes if benefits reach the people.

8. Biggest GST Reform Yet: Two-Rate Structure

   • The latest rationalisation is one of the most significant GST reforms, restructuring the system into a two-rate model.

   • If implemented honestly, it can lower prices, boost demand, and benefit the aam aadmi.