New Delhi, November 21: The benefit of the GST rate reduction should be passed to the consumers said the Central Board of Excise and Customs (CBEC) to the Industry leaders. The changes were applicable from the midnight of 14th November after the 23rd GST council meeting was held on 10th November and the decision to reduce the GST rate on 178 products was taken by the committee.
The letter written by the CBEC Chairperson, Vanaja Sarna to all the Fast-Moving Consumer Goods (FMCG) companies strained on the need to revise the MRP on all the products in which reduction of GST has been publicized. Also, she requested Industry leaders to give wide publicity to the revised MRP of products.
In a statement, Finance Ministry said that the benefit of reduction in the GST rate has to be passed on by the suppliers to the consumers by way of proportionate reduction in prices. The reduction in GST rates is also expected to boost domestic demand and investment. The government expects that the industry would immediately respond to the earlier appeal made by Finance Minister Arun Jaitley on this issue.
On 10th November the GST Council took the decision to reduce the GST rates on 178 products which were applicable from 15th November.