On Wednesday, the rates of goods and services (GST) were brought to two boards – 5% and 18% – out of four earlier. Several goods were moved from earlier 12% and 28% of plates to lower plates, some were even shifted down from 18% to 5% and a number of basic items were liberated from GST.
In order to ensure that these changes are made by companies selling these goods and services, the Ministry of Consumer Affairs of the Union searches complaints about social media, reviews the representation of consumer groups and carefully monitors complaints received in the National Consumer list (NCH).
At the same time, after September 22, the tax authorities will also carefully monitor the price behavior of enterprises to ensure that consumers gain the full advantage of the GST cut, the chairman of the Central Council of indirect taxes and customs (CBIC) said in an interview for Mint.
“The aim is to ensure availability for consumers and prevent denying legitimate benefits,” said the first.
“The rejection of the benefits of GST cuts for consumer will be considered an unfair business practice and a notice will be issued,” the second cited above said, adding that the Ministry would realize Suo Motu to avoid the benefits. “If the answers are found unauthorized, sanctions will follow.”
According to the other person, the advantage of the GSTS to consumers as an unfair business practice under Section 2 (4) (4) of the Consumer Protection Act may be considered. In such cases, the Central Consumer Protection Office (CCPA) has the power to £10 lakh for the first violation and up to £50 Lakh for repeated offenses.
At the same time, both persons stated that the Ministry of Consumer Affairs will remain outside the tax disputes and appeal and reduce its role only to ensure that consumers gain the benefits of revised GST rates.
According to the Ministry of Finance, the Court of Appeal for Taxes and Services (GSAT) will be carried out in operation to accept the appeal by the end of September and is expected to start hearing by December 2025.
Questions sent to the Ministry of consumers on the above plan remained unanswered until the press period.
On Thursday, however, Minister of Trade Unions for Consumer, Food and Public Distribution Affairs Joshi said Mint that GST is either zero or a maximum of 5%for food products.
“When we deal with the Ministry for Consumer and Food Affairs, this simplified GST will help consumers, MSME and small businesses,” he said. “It is the largest gift for consumers, with the prices of basic objects to descend. Everyday foods such as DOSA, Roti, Milk and other basic items now attract zero GST.”
What do experts say
Abhash Kumar, a professional assistant to Delhi University, said GST cuts will directly reduce prices across categories.
“For items that are now without GST, such as milk, Roti, DOSA and bread, prices may drop by 3-5%,” he said. “Products that ranged from 12% to 5% such as packaged food, shoes and clothing £2,500, could see a reduction of 6-7%. “Kumar added that the goods will move from 28%to 18%, expected to be cheaper by 8-10%.
Basic items consumed daily, such as UHT milk, pre -praised Pan and Indian bread including roti, chapati, parathha, khakhra and pizza bread, now attract zero GST. Medicines, especially 33 drugs rescue life, which were previously taxed to 12%, along with three specialized cancer drugs and chronic conditions carried by 5% of the collection, were also moved to the Nile category. In addition, individual life and health insurance are now fully exempt from GST.
The exception has also been extended to education -related products, unloaded paper, exercise books, pencils, guys, crayons, sharpens, maps, globes and laboratory notebooks placed in zero tax holder, alleviating cost load on students and parents.
Furthermore, according to Miren Lodha, head of Crisil Intelligence director, new GST rates will reduce the prices of products in key sectors such as cars and consumer duration.
For example, in the case of small cars and compact commercial vehicles, which collectively represent approximately 55%of the volume of the passenger car industry, the rate is expected to reduce the price of 8-9%, “will improve 200 bps to 4-6%, compared to our earlier estimate of 2-4%”.
Tractors are expected to reduce the rate to 5% of 12% to reduce the cost of acquisition and convert to savings £40 000–60,000 per unit in the core segment 41-50 horsepower, said the boat, adding that a fall in prices will be immediate in the invoice phase and will not register for registration, increasing the availability for both registered and unregistered use.
“With this, we expect the industry to see a volume growth of 8-10% this fiscal, 150-200 bps from our previous estimate of 7-9%,” Lodha said.
With entrances from Gireesh Chandra Prasad.
(Tagstotranslate) cuts GST
