The prices of products made before July 1 whose tax burden has increased under the Goods and Services Tax can be increased as long as manufacturers advertise the raise in a local newspaper, the Consumer Affairs Ministry said on Tuesday.
In case the price has to be lowered post-GST, Consumer Affairs Secretary Avinash Srivastava said manufacturers do not need to place advertisements in the local newspaper. The provision to use goods manufactured before July 1 will extend for three months, the Secretary said.
“GST implementation may result in some price changes,” Mr. Srivastava said while briefing the media on Tuesday. “If the price increases, the manufacturer or vendor has to place two advertisements in the local newspaper saying that the price increase is because of the new tax system. They will also have to place a sticker with the new price on the product.”
Sticker price
“In case the price is lower, then the manufacturer has to paste the sticker, but need not place advertisements in the paper,” Mr. Srivastava added.
“After GST came into effect, the prices of some items have gone up while the prices of others have come down,” Minister of Food & Public Distribution, and Consumer Affairs Ram Vilas Paswan tweeted on Tuesday. “The benefits of decreased prices,by reduction of tax after imposition of GST, should reach the consumers.”
“We have granted relaxation till 30.9.17 to industry under Packaged Commodities Rules to write new MRP on items of reduced prices due to GST,” the minister said in subsequent tweets. “New MRP should be mentioned on the items where prices have increased due to GST so that the consumers can be aware of the impact of GST. The shopkeepers not mentioning MRP revised because of GST will be liable for legal action.”
Also speaking at the press conference, Revenue Secretary Hasmukh Adhia said that the implementation of new indirect tax regime is progressing smoothly and that the government has set up a Feedback and Action Room in the Ministry of Finance.
“All state and central subordinate offices have been told to pass on to the Feedback and Control Room if they are aware of any lingering problems that are arising in the implementation,” Mr. Adhia said. “We are also closely monitoring the price and supply situation.”
Officers to monitor
The Revenue Secretary also said that, from Wednesday, 175 officers in the government at the level of Joint Secretary and Additional Secretary will be assigned 4-5 districts that they will have to monitor in order to ensure a smooth implementation of GST. They will report to the Cabinet Secretary.
“A Central Monitoring Committee has been constituted comprising 15 secretaries from departments that are in direct contact with consumers, to monitor commodity pricing and client groups,” Mr Adhia said. “The Cabinet Secretary will meet the Committee once a week on Tuesday.”
The government is also organising a six-day ‘GST master class’ from Thursday on Doordarshan.
