The GST anti-profiteering authority has been set up to ensure benefits of GST rate cuts are passed on to the consumer. Photo: Ramesh Pathania/MintThe government is unhappy with the trickle-down effect of lower tax outgo under the Goods and Services Tax (GST) Act. Elimination of multiple cascading taxes, input tax credit and lower tax rates on mass consumption items were supposed to lead to lower prices and happy consumers. Another warning was notification of the anti-profiteering authority—empowered to investigate and penalize companies who are not passing on tax benefits. Apart from product-level input tax benefits, companies also get company-wide input tax credit.

Source: Mint November 29, 2017 01:52 UTC