New Delhi: The government has pushed consumer goods companies to cut prices and pass on the benefits of the recent Goods and Services Tax (GST) rate cut to customers.
The Central Board of Excise and Customs (CBEC) on Monday asked the companies to immediately lower prices of shampoos, detergents, deodorants and other products on which GST was slashed from 28 per cent to 18 per cent.
While several companies have already lowered prices, there are others who are yet to pass on the gains.
Finance and Revenue Secretary Hasmukh Adhia had earlier said that the FMCG firms and big corporates will have to ensure that retailers pass on the benefit of GST rate cut to consumers and sell their products only after lowering the MRP (maximum retail price).
Apart from the consumer products and other daily-use items, the government is also looking to reduce GST on consumer durables like washing machines and refrigerators from the current level of 28 per cent as part of the next round of rationalization.
Last week, the GST council had reduced tax rates on over 200 items with leaving just 50 goods in the highest bracket (28 per cent).