सविस्तर माहितीसाठी इकॉनॉमिक टाइम्स मधील बातमी वाचावी.

One of the stated objectives of introducing the goods and services tax (GST) is to eliminate multiple taxes, remove cascading of taxes, rationalise tax rates and enhance the spectrum of the input tax credit. This would reduce the incidence of indirect taxes on the products and services.

With such a reduction in the tax incidence, it is expected that the prices of goods and services are reduced. This, in turn, one would expect, would result in consumer benefits handed down from the reduction in the incidence of taxes.

The Price of Profit-erring
The government made its intention clear by introducing an anti-profiteering clause in the GST law to ensure that a commensurate cut in the prices on account of a reduced tax rate, or the benefit of higher input tax credit, is passed on to the consumer. It also proposed to set up an authority to monitor such instances of profiteering.

The prices are mainly driven by elasticity of demand, supply constraints and competition. As pricing is a function of multiple factors, it is difficult to attribute only one factor responsible for increase or decrease in prices. Therefore, the actual implementation of this provision is quite challenging both for business and government.

via Goods and Services Tax: How the government can enable reduced prices under the GST regime to reach consumers – The Economic Times