The Centre has directed the ‘Anti-profiteering Authority’ on GST to ensure that prices of sanitary napkins sold in the country come down after the GST rate reduction decision of Saturday. It is now for the Authority to ensure that the GST rate cut benefits are passed on to the consumers.
This was revealed by interim Finance Minister Piyush Goyal on the sidelines of a meeting organised by Confederation of All India Traders (CAIT) in the Capital on Monday.
Meeting demands
Bowing to demands from various quarters, the GST Council on Saturday decided to bring down the GST rate on sanitary napkins from 12 per cent to zero. Goyal said he has asked the Anti-profiteering Authority to look at the prices after the notification of Saturday’s decision and compare it with the prices on July 1 last year (when GST came into effect) and take appropriate action if prices are not lowered.
“They cannot have the cake and eat it too,” Goyal said, in an apparent reference to industry.
Goyal also told reporters that notion, in certain quarters, that prices cannot be brought down due non availability of input tax credit in the new revised regime is “completely misplaced”.
“I have today seen reports in various sections of media that prices of sanitary napkins may not be lowered because input tax credit set off may not be possible if the end product (sanitary napkin) is exempted from GST. This notion is completely misplaced,” Goyal said.
According to a PTI report, manufacturers of sanitary napkins have been continuously demanding that tax rates be brought down so that prices can come down, Goyal told reporters.
If they do not reduce the rate now that means they have been profiteering for the last 12 months and the directorate is already seized of the matter, Goyal said.
Under the Goods and Services Tax (GST) law, the Directorate General of Anti-Profiteering investigates complaints against manufacturers, dealers and traders for not passing on tax rate cut benefits in the form of price reduction to consumers.