Pass on GST rate cuts or face withdrawal of benefits: Jaitley to businesses
If you (business) do not pass on the benefits of tax credits, you lose them: Finance minister Arun Jaitley
New Delhi: Finance minister Arun Jaitley on Saturday warned that businesses not passing on the benefits of tax cuts and rebates to consumers will have to brace for withdrawal of tax benefits.
Jaitley reminded businesses of the National Anti-profiteering Authority (NAA), which he described as more than active. “Of course, businesses have to pass on the benefits to consumers. Or we will do what we did in the case of restaurants.”
In November 2017, the GST Council reduced the tax rate to 5% for all restaurants from 12% for non-AC and 18% for AC restaurants. The tax cut was accompanied by withdrawal of input tax credits. The tax credits were withdrawn after widespread complaints about eateries overcharging consumers by not passing on the benefits. Restaurants in five-star hotels are still in the 18% slab with tax credits.
“If you do not pass on the benefits of tax credits, you lose them, “ the minister said during a briefing after the 31st meeting of the Goods and Services Tax (GST) Council here.
Recently, the NAA has witnessed a surge in complaints relating to overcharging by fast-moving consumer goods (FMCG) companies on items such as handwashes, deodorants, scented oils and cosmetics.
- Barista in advanced talks with Swiggy, another player for food delivery
- Insurance startup Turtlemint raises $25 million from Sequoia, Nexus, Blume Ventures
- India to bar private refiners from tapping Iran oil quota
- Snapdeal partners with RBL, Federal Bank to penetrate non-metro markets
- Cabinet approves ₹6,000 crore capital infusion in Exim Bank
Editor's Picks »
- Why Tata Motors’ Project Charge at JLR is failing to recharge its shares
- Outlook on global profit growth worst since 2008 financial crisis
- Q3 results: ICICI Securities loses its retail broking crown
- High drug approvals to keep up pricing pressure for pharma firms
- Roads sector: Toll collections set to surge, but risks loom for developers