State authorities asked to check if companies are passing on GST cut benefits

The Central Government has directed state metrology controllers to assist GST officers to cross-verify revised sales price (MRP) of pre -packaged commodities and consumer authorities will undertake a drive to check labelling.

The government is keeping a close tab on the price scenario on the products that saw rate cuts to ensure the benefit is passed on to consumers and not pocketed by companies.

The anti-profiteering machinery is also keeping a close watch on whether companies are passing on the benefit or not.

“The memorandum on GST officers collaborating with state legal metrology controllers clearly demonstrates government’s seriousness to ensure that the impact of rate reduction and additional input tax credit reaches the intended beneficiaries that is the end consumers” said Harpreet Singh, partner, Indirect Taxes, KPMG

The consumer affairs ministry had earlier issued a directive under the Legal Metrology Act permitting companies to affix pasting or stamping of new prices on old when the rates were slashed in November last year and again in July this year.