In the latest awake for GST anti-profiteering authority under the goods and services tax, the weavers from Surat, Gujarat are demanding the anti-profiteering provision to be applied as soon as possible.
Their demand is in line with the fact that they are not getting the reduced price benefits after the decline of the tax rate from 18 percent to 12 percent now applicable on polyester yarn.
It is claimed by the weavers that the spinners manufacture the yarn and later sells the manufactured yarn to the weavers but the benefits are not passed to them even after the government had reduced the rates.
Federation of Gujarat Weavers Association (FOGWA) in a statement stated that “There is a provision in GST that if the tax burden on the product is lowered, the seller has to pass on the benefit to the buyer. On the other hand, the cost of yarn has risen by Rs 100-150 per kg or about 35% in past four months. Most of the rise is in just over a month.”
It was well cleared that if in case any business entity found not passing tax reduction benefits to the consumers, it will be penalized according to the anti-profiteering provision. But to the irony, the anti-profiteering is still under construction and not implemented to date so to take action against willful defaulters.
