Finance Secretary, Ministry of Finance, Hasmukh Adhia on Saturday requested companies to pass on the benefits of GST rate cut to the consumers. He said that the companies should paste stickers of the revised rate of MRP on their products. “We request companies to pass on GST rate cut benefits to consumers. Companies should paste stickers of revised rate of MRP on their products,” Adhia said. The statement comes exactly 10 days after the new GST rates were implemented. Talking about the National Anti Profiteering Authority which was approved by the Cabinet earlier this month, Adhia said that it will be announced within one week.
The GST Council in its 23rd meeting earlier this year had brought down the tax charged on restaurant bills to a uniform 5% from 12% and 18% that was charged earlier depending upon AC or non-AC restaurants. Speaking about this decision, Adhia said that customers were being overcharged earlier but now, at least they know that the government is charging only 5%. “Earlier restaurants charged more from customers stating that they are being charged under 18% GST. Now the customer at least knows that in their bill the govt is charging only 5%,” he added.
The Finance Secretary said that if Input tax credit mismatches with prices raised by the big restaurants, anti-profiteering action will be taken against them. “As far as big chain of restaurants are concerned, if they’ve uniformally raised prices, we’ll ask them what their Input tax credit was which they don’t get now. If Input tax credit mismatches with prices raised anti-profiteering action will be taken against them,” Adhia said.
This came in response to the reports suggesting that some major eating outlets including McDonald’s and Domino’s have increased their menu prices. Also, many customers took to various social media platforms to reveal that they have been overcharged after the GST cut rate.