Will the goods already available in the market also get cheaper after the GST reduction? Know everything that is important to you

Finance Minister Nirmala Sitharaman said that the GST Council has decided to simplify the tax slabs. The 12% and 28% slabs have been abolished. These have been merged into 5% and 18% slabs.

The central government gave a big relief to the common man on Wednesday night (September 3) night. Actually, Finance Minister Nirmala Sitharaman announced a big change in GST rates in a press conference after the 56th meeting of the GST Council. She said that 99 percent of the items with a 12 percent GST slab have been shifted to 5 percent tax slab. At the same time, 90 percent of the items with 28 percent GST slab have been shifted to 18 percent GST slab. Apart from this, GST on all things has been made zero percent. In such a situation, the question arises whether this step will also make the goods already available in the market cheaper?

Finance Minister gave this information

Union Finance Minister Nirmala Sitharaman said that the GST Council has decided to simplify the tax slabs. The 12% and 28% slabs have been abolished. They have been merged into 5% and 18% slabs. Apart from this, a new 40% slab has been implemented for luxury and sin goods. He said that this is part of 'GST 2.0', which is in line with the promise of Prime Minister Narendra Modi's Independence Day address. Our goal is to provide relief to the common man, middle class and MSME. This step will help control inflation and increase consumption.

Will old stock become cheaper?

The biggest question in the minds of consumers is whether the goods already present in the shops, which were taxed according to the old GST rates, will become cheaper now? Answering this question, the Finance Minister said that the benefit of GST reduction will be applicable immediately and companies have been instructed to update the prices according to the new rates. However, there are some conditions for the already existing stock.

Adjustment of Input Tax Credit (ITC): Shopkeepers and manufacturers can claim ITC for the tax already paid on old stock. This will make it easier for them to sell goods at new rates. Sitharaman said that pre-filled returns on the GST portal and faster refund process will ensure that businessmen implement the new rates quickly.

Responsibility of companies: FMCG companies have been instructed to update MRP according to the new rates. If a company sells goods at the old MRP, it will be considered profiteering and the Consumer Court or Competition Commission of India (CCI) will take action against it.

Time of old stock: It may take 2-4 weeks for the old stock to be exhausted in the market. During this time, some shopkeepers can sell goods at old prices, but consumers can check the new GST rate in the bill. If the shopkeeper does not apply the new rate, a complaint can be lodged. The Finance Minister appealed to the consumers to ask for the bill and check the GST rates. He said, 'Our effort is to ensure that the full benefit of tax reduction reaches the customers. CCI and the tax department will monitor this.