After Reducing GST Rates, Govt To Make Sure That Consumers Are Not Overcharged For Services

Prime Minister Narendra Modi has asked the consumer affairs department to give "special focus" to complaints regarding Goods and Services Tax (GST) amid reports that many companies and eating outlets were not passing on the benefit of the reduced GST rate to the consumers.

In the last GST Council meeting, a total of 178 daily use items were shifted from the top tax bracket of 28% to 18% and a uniform 5% tax rate was prescribed for airconditioned restaurants and non-AC ones.

Reuters/Representational Image

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Modi's directions came while chairing his monthly web-based interaction (PRAGATI) with secretaries and chief secretaries last week. According to the minutes of the meeting issued on Monday, the PM also asked the department to make systemic changes to minimise grievances while reviewing issues related to consumer grievances.

Sources said that Modi suggested the department should focus on finding out whether the benefits of lower GST is actually reaching the consumers. The PM also asked the department to take more steps to spread awareness about the service charge levied by eateries. There have been complaints of how companies have increased the base price while charging less GST with the result being that the reduced rate is not passed on to the consumer.

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The consumer affairs ministry has issued notification and circulars to all state governments to ensure that the labels of all packaged products in the market reflect the new rate after the recent reduction in the GST rate.

"Immediately after the GST rate cut we issued directions to put an additional sticker on labels mentioning the reduced price. We have issued notification specifying there will be no dual MRP for the same product, which will be enforced from January," consumer affairs minister Ram Vilas Paswan said.

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Officials said the PM was told that about 3,500 raids have been carried out across the country by state metrology departments. The National Consumer Helpline run by the department has deployed two former assistant commissioners of Central Board of Excise and Customs to address GST-related queries.

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