They cite consumers are still being overcharged by some traders, restaurants and chain food outlets
Political Parties have appealed to the Centre that the GST reduction should be passed on to the ultimate consumers. They have cited that despite GST Council's move to cut a tax on 178 items to 18% from 28% and in case of restaurants to 5%, the consumers at the retail level have not felt a substantial change.
This is despite repeated call given by the finance secretary Hasmukh Adhia that company has to ensure that their entire distribution chain-wholesalers, retailers- pass on this tax cut.
Adhia has also asked fast moving consumer goods to ensure that the tax cut is passed to consumers if they want to escape action from the Anti Profiteering Authority.
BJP MP from Northeast Mumbai Kirit Somaiya in his letter to the Prime Minister Narendra Modi has complained that several traders and entrepreneurs are not passing on the benefits to the ultimate consumers. He has quoted some examples of AC restaurants and chain food outlets who have allegedly manipulated the prices and value of their products to pocket the difference of reduction to 5% from 18%.
Further, Somaiya said that several restaurants are yet collecting 18% in the name of GST or old sales tax slab rates. ‘’I thank the government to reduce GST to 5% from 18% in restaurants, bring down GST on consumer used items to 18% from 28% and provide relaxation in 200 items. However, the officials from the ministries of finance, consumer affairs, and the state governments should be asked to take appropriate action to see that the government’s initiative to slash GST rates as passed on to the ultimate consumers,’’ he noted.
The Nationalist Congress Party spokesperson Nawab Malik also cited that the restaurants continue to recover from the consumers GST at the previous rates so also the consumer goods companies. ‘’The government will have to immediately look into the issue especially when GST has been touted as seamless taxation across the country. As far as restaurants are concerned, they pay GST on purchases but they do not get set off on final sale. This has to be looked into,’’ he opined.
Both Somaiya and Malik argued that the ministry of consumer affairs need to act swiftly which will help consumers to benefit from the tax cut.
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