India

GST: Govt to issue detailed price list for transperency

07 Aug 2017 | By Gogona Saikia
Challenges to GST: Producers pocketing unauthorized profits

The process of migrating to the GST regime hasn't been very smooth. Its implementation has also allowed producers to profit by abusing rules.

One way companies have been doing this is by not passing on the benefits of reduced taxes to consumers and instead pocketing it themselves.

To counter that, the government will soon issue a price list of various products to ensure transparency.

In context: Challenges to GST: Producers pocketing unauthorized profits

07 Aug 2017GST: Govt to issue detailed price list for transperency

ProcessTo start with, a list of 150 items

"To begin with, 150 items will be taken up. It will have detailed explanations of previous taxes and prices as well as new prices," an official said.

The government had earlier released an app detailing tax rates for different items.

States including Bihar, Kerala and WB pressed for a list due to several complaints that prices hadn't come down after GST.

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Meanwhile, states have started their own corrective measures

StatesMeanwhile, states have started their own corrective measures

Some states have already started taking measures to crack down on unauthorized profit-making. Maharashtra and TN have sent letters to sellers/producers seeking details of prices.

Others like Puducherry and Andhra Pradesh are doing the same through phone.

To the contrary, some ministers want companies to be allowed to decide prices, arguing that price control would go against the spirit of empowering businesses.