The Indian Foundation of Transport Research and Training (IFTRT) has called on the government to ensure that the GST Council sets up an enlarged tariff commission to scrutinise the pricing structure of key products for making sure that the reduction in tax rates under the new taxation regime is passed on to the consumer.

In a letter to the Finance Ministry, SP Singh, Senior Fellow at IFTRT, said, “GST (Goods and Services Tax) is going to reduce the cascading impact on product prices.

Free goods movement

The seamless movement of goods and services should not only benefit the industry, trade and transport sector but also the end-consumer.

At present, the under-reporting, under-invoicing and tax avoidance are a key part of the business policy, which will most likely end in the GST regime.”

Singh also said that there are alarming signals emerging from markets that most manufacturing units and traders are working overtime to hike product prices by the time GST is enforced.

“The increase in car prices by auto makers immediately after the 122nd Constitution Amendment Bill, paving the way for GST, was passed last month by Parliament is an example of such opportunistic pricing to usurp the likely reduction due to GST,” he said.

However, he welcomed that the formation of the GST Council has been approved by the Cabinet and that a number of State assemblies have also endorsed the Constitution Amendment Bill which is an indication that implementation of GST remains as per schedule.

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