CBEC chief asks FMCG companies to pass benefits of GST rate cuts

 Sanjeev Sharma

Tribune News Service

New Delhi, November 20

Having to prod the industry for still not passing on the benefit of lower GST rates to the public, the Central Government on Monday asked the industry leaders to pass on the benefit of GST rate reduction to the consumers as it is expected to encourage domestic demand and investment.

Vanaja N Sarna, Chairperson, Central Board of Excise & Customs (CBEC), today addressed a letter to all the major fast moving consumer goods (FMCG) companies pointing out the need to immediately revise the MRP on all the products in which the reduction of GST has been announced by the GST Council.

She has also requested companies to give wide publicity to the revised MRP of products. 

“The government expects that the industry should immediately respond to the earlier appeal made by the finance minister on this issue”, an official statement said.

The GST Council in its 23rd meeting held on November 10, at Guwahati, had recommended the reduction of the GST rate from 28 per cent to 18 per cent on goods falling under 178 headings, leaving now only 50 items under the GST slab rate of 28 per cent.

A large number of items have also witnessed a reduction in GST rates from 18 per cent to 12 per cent and 12 to 5 per cent. All these changes are effective from the midnight of November 14.

“The benefit of reduction in the GST rate has to be passed on by the suppliers to the consumers by way of commensurate reduction in prices. The reduction in GST rates is also expected to encourage domestic
demand and investment,” the statement said.