Business Standard

Cos can raise product weight in lieu of price cut to pass on GST benefit

However, benefits must be passed on to consumers at SKU level, clubbing with promos not allowed, says National Anti-Profiteering Authority

GST
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GST

Avishek Rakshit Kolkata
Increasing the grammage of various products instead of an outright price cut post a reduction in GST rates won’t result in flouting the anti-profiteering clause under the GST norms. However, the benefits have to passed onto the consumers at the SKU level.

According to B N Sharma, chairman of the National Anti-Profiteering Authority (NAA), who was talking to various members of the Merchants’ Chamber of Commerce and Industry at an interactive session in Kolkata, although the law mandates that companies have to cut prices on goods if the GST is lowered for those products, in “spirit of the legislative intent”,

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