Food and Civil Supplies Minister U.T. Khader on Monday warned retailers of action if they fail to reduce the Maximum Retail Price of products, in view of the reduction of tax under the new Goods and Services Tax regime.
Talking to reporters here, Mr. Khader said that following reduction of GST on more than 170 products, intimation was sent to retailers on November 22 asking them to reduce the MRP accordingly. “But some have continued to sell products at the old rate, while others are selling products at a discount, the quantum of which reduction is the difference amount after revision of GST,” he said.
Officials of the Legal Metrology Department visited 23 places in Mangaluru and booked cases against five retail chains on November 24 and 25. Similar action will be taken in other parts of the State, he said.
An official from the Legal Metrology Department said that non-reduction of MRP following reduction in the GST was an offence under Legal Metrology Act. For the first offence, it will be compounded and a fine of ₹ 2,000 per partner of the retail firm will be imposed. For subsequent offences within three years, the department will file a criminal case before the jurisdictional court, the official said.
On the action against the five retail chains, the official said that the offence had been compounded. They are yet to calculate the fine amount to be paid by these firms.
Though appreciating GST, Mr. Khader accused the Centre of poor implementation. Though the Centre has reduced tax on many products under GST regime, the benefits are yet to be passed on to consumers. “We are the only State to take action against retailers, who are not passing the benefits on to consumers,” he said.
Criticising the Bharatiya Janata Party for seeking resignation of Ministers K.J. George and Vinay Kulkarni, Mr. Khader said that there was nothing against the two Ministers meriting the demand.
