Price revision with new GST rates to hit items worth Rs 6 lakh crore

Confederation of All India Traders has written a letter to Ram Vilas Paswan, Union Consumer Affairs Minister to allow pasting of revised price stickers on the current stocks.

Published: 12th November 2017 09:18 PM  |   Last Updated: 13th November 2017 09:15 AM   |  A+A-

For representational purposes (File | Reuters)

Express News Service

NEW DELHI: Packaged items worth Rs 6 lakh crore in the country will have revised price tags with change in GST tax rates of about 200 products by the GST Council last week. Traders said that it is necessary to revise the prices of the packaged items following the change in tax rates as it is only going to benefit the consumers.

Keeping this in view, the Confederation of All India Traders (CAIT) has written a letter to Ram Vilas Paswan, Union Consumer Affairs Minister to allow pasting of revised price stickers on the current stocks.

Praveen Khandelwal, secretary general, CAIT said that it is estimated that goods worth about Rs. 9 lakh crore are still in the market across Country and out of which goods of about Rs. 6 lakh crore is in packaged condition having MRP.

“If it is not allowed than this huge quantum of goods can't be sold in the market and if such goods goes out of supply chain , it will have adverse impact on manufacturing sector and will hamper economic growth to a great extent and possibilities of scarcity of daily consumables can't be ruled out,” said Khandelwal.  

Under Packaged Commodity Act, it is mandatory provision that any commodity in packaged shape will invariably have printed MRP .

In a big relief to common people, tax rates on over 200 items, ranging from chewing gum to chocolates, to beauty products, wigs and wrist watches, restaurants were cut in last week’s GST council meeting. As many as 178 items of daily use were shifted from the top tax bracket of 28 percent to 18 percent, while a uniform 5 percent tax was prescribed for all restaurants, both air-conditioned and non-AC.

The CAIT has further said that the ministry may allow pasting of revised price stickers on such stocks to avoid any penal action against either any merchant or manufacturer since pasting of stickers is inevitable due to change in GST rates of the respective commodity.

On the other hand, the CAIT has strongly said that GST portal has brought much harassment and mental agony to traders by its non smooth functioning and has proved a major roadblock in success of a good taxation system like GST. “Why no action is being taken against Companies who have taken the contract of GST portal at a huge cost of about Rs 1400 crore. As it was under obligation to keep the portal in perfect functioning condition and it has miserably failed, why penal clause under the contact is not invoked so far,” said Khandelwal.

CAIT further said that against its demand of CBI enquiry, the companies have come out with lame excuses having a stereo type reply that portal is functioning well. " We challenge to conduct random sample survey of the portal in 10 different cities of the Country to examine working of the portal and truth will come out as to how difficult it is to use the portal for filing information " said Khandelwal.

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