The multinational companies have cleared the reason for not passing the GST benefits to the consumers and the reason itself is not eligible for any approval.
In the argument, the MNCs stated that most of the products falling into the price reduction criteria have created confusion due to the decimal point of changes required. The companies argued that there is very much difficulty in adjusting the prices of these items due to the minuscule changes in the price and that too in the decimal points.
In return, the anti-profiteering authorities have asked the companies to adjust the quantity of the product so that the actual benefits of the rate reduction reaches out to the consumers.
The companies also clarified that they have made necessary changes to the larger packs but still confused regarding the smaller packs on the price changes is in the decimal points. It is absolutely compulsory to change the prices on the commodities after the GST rate reduction and the companies must follow the rate reduction process as soon as possible.
It must be noted that the anti-profiteering authority has the power to cancel the registration if in case the company fails to pass the reduction benefits to the consumers. Earlier there were reports of an audit of the tax department on the e-commerce portals due to the companies hiding their business transactions and possible evasion of GST.
Most of the FMCG companies had reduced their rates on multiple products after the GST rate reduction but still, there are chances of possible business transactions with older GST tax rates.
The government has already directed most of the FMCG companies to revise the price tags on their inventory lied within the factories as well as on the stocks lying with the retailers.
However, many of the companies had opposed this move as there are no chances of changing price tags on the goods already sent to the retailers in the market. Even some of the FMCG companies went ahead to changes the price stickers on the previous stock and will be reporting soon on the development of this practice.
The directive had clearly mentioned that the goods must be accompanied with the revised MRP sticker along with the older price sticker so that the consumer can ascertain the actual price changes.
