PRE & POST GST Prices Under Surveillance
As per various reports , the prices are under close surveillance.Some companies have also got calls for pre and post GST pricing.
The most enquired segment is makers of consumer goods and handsets, as well as some restaurant chains, by local tax authorities seeking details of invoices before and after GST as part of the exercise.
The Government after incorporating anti profiteering provision under CGST Act/SGST ACT/UT-GST Act is equally keen that the benefit of the reduced price should be passed over to the end consumer.
Malaysia and Australia had put in place a mechanism to ensure prices didn’t shoot up after GST was implemented in those countries. Malaysia has benchmark price system whereby price index book is released on regular basis on the basis of hyper and supermarket prices.
The reason of such inquiry at this nascent stage is also due to economical and political reasons. Everywhere GST was introduced it resulted an increase in inflation.The Government has already faced all round criticism for so called hasty implementation of GST. Further, elections in some States are already on agenda.
The exercise on anti profiteering may bring some control measure especially after guidelines were issued for declaring MRP if old packing materials are used. Further, every person increasing prices have already been instructed to declare it in atleast two newspaper.
Hence, the onus has been casted upon the business houses to have self assessment and if they fail to declare in newspaper it will be presumed that no price has increased. In such a case, the but natural conclusion would be either the prices have gone down or remained as such. In both the situation, the business houses will have to sustain their pricing