GST relief: Companies asked to share revised prices of consumer durables, cars with consumers

New Delhi: The Centre has asked businesses to provide tentative price lists of consumer durables, cars, and other products after the Goods and Services Tax (GST) reduction, which can be displayed on the official GST website for consumers to see the exact relief they will receive ahead of the September 22 deadline, officials said.

The Central Board of Indirect Taxes and Customs (CBIC) held a detailed meeting with representatives from business chambers, industry bodies, and ministries of heavy industry, consumer durables, agriculture, and pharma to ensure smooth implementation of the rate cut announced at the recent GST council meeting.

Officials asked businesses to display both pre- and post-GST rates at their retail outlets or dealerships so consumers can know the exact relief they are getting.

The Centre expects 90% of the rate rationalisation to be passed on to customers, with most industries agreeing to pass on the benefits of the rate cuts. This may result in a reduction of costs by 10% for consumer durables and 12-15% for automobiles, including two-wheelers. “We got a very encouraging response from the industry. While the quantum of benefit may vary from sector to sector, we will work with them to remove any pain points,” a senior official told ET.

Pankaj Mohindroo, chairman of the industry body India Cellular & Electronics Association, who attended the meeting, said the government and industry agree that GST reduction benefits must be clearly visible to consumers.

“Adjustments in MOP and MRP should clearly reflect the lower GST on products such as televisions, air conditioners, monitors, and dishwashers. Only when consumers notice the price difference will demand be stimulated and the industry achieve the intended growth momentum,” he said.