After GST cut, product prices need revision
With change in tax rates of around 200 products by the GST Council last week, there is need to revise prices of many packaged commodities in the country by pasting revised price stickers on the current stocks, said traders’ body Confederation of All India Traders (CAIT).
CAIT on Sunday sent a communication to Union consumer affairs minister Ram Vilas Paswan to allow pasting of revised price stickers on the current stocks held with the traders and manufacturers across the country for the packaged goods.
The body has sought the minister’s intervention urging him to issue a notification permitting pasting of revised prices till March 31, 2018, in order to enable traders to liquidate the stocks.
CAIT pointed out that under Packaged Commodity Act, it is mandatory provision that any commodity in packaged shape will invariably have printed MRP. “It is estimated that goods worth of about `9 lakh crore are still in markets across the country, of which goods of about `6 lakh crore are in packaged condition having MRP, besides stocks held by manufacturers,” CAIT said.
CAIT said that if it is not allowed than huge quantum of goods can’t be sold in the market “and if such goods goes out of supply chain, it will have adverse impact on manufacturing sector and will hamper economic growth and possibilities of scarcity of daily consumables can’t be ruled out.”
It said that the ministry may allow pasting of revised price stickers on such stocks to avoid any penal action against either any merchant or manufacturer since pasting of stickers is inevitable due to change in GST rates of the respective commodity.
GST Council on Friday had cut tax rates on 200 items including chocolates, condensed milk, pasta, chewing gum, detergents among many others.
If such goods goes out of supply chain, it will have adverse impact on manufacturing sector and will hamper economic growth and possibilities of scarcity of daily consumables can’t be ruled out — CAIT