Meeting industry representatives a day ahead of midnight rollout of Goods and Services Tax (GST), finance minister Arun Jaitley asked the industry to pass the benefits arising from tax rate reduction in the indirect tax regime to the consumers in a transparent manner.
“The overall incidence of tax after implementation of GST will be less especially in case of the consumer goods than the present incidence of tax, therefore, it is imperative on part of the trade and industry to pass on these benefits to the consumers at large,” Jaitley was quoted as saying in a finance ministry statement. The finance minister also said he was “sure” that GST will not have any inflationary impact and asked the industry to educate distributors, retailers and consumers about the positive impact of GST on the price front, the statement said.
The industry assured the government that the benefits of price reduction would be passed on to the consumers. They also put forward their concerns and asked the government to issue certain clarifications to remove any doubt or confusion among the traders, the statement said.
According to industry representatives, it would take about three months to assess the impact of GST on prices. Jyotsna Suri, CMD Bharat Hotels, said the hotel industry is very much ready for GST rollout. “We assured him (Jaitley) we are ready for the roll out. Even if this was rolled out after 6 months, we would have same amount of panic. We will take it in its stride,” Suri said.