GST 2.0: Amid concern of ‘profiteering’, FinMin to compile price data of common use items
AMID CONCERNS the industry may not fully transmit the benefits of the GST rate cuts to end-consumers, the Revenue Department under the Union Ministry of Finance has asked its officers in the field to compile monthly data reports on price change of commodities pre- and post-GST rate rationalisation. The new rates will be effective September 22.
In a letter to principal chief commissioners and chief commissioners of central GST zones on Tuesday, the department has sought commodity-wise price data on fast-moving consumer goods, food and educational items, and drugs and medicines, as well as cement and white goods, from the field offices and trade associations under their jurisdiction for the next six months. The first report has to be submitted by September 30.
The field offices have been asked to treat this price compilation exercise “on priority”, with the monthly report to be sent to the Central Board of Indirect Taxes and Customs (CBIC) by the 20th of every month, the department said in the letter seen by The Indian Express. The data would include details including the name of the commodity, the brand, the maximum retail price before and after September 22, 2025.
The food items to be tracked include condensed milk, butter, cheese, ghee, ultra-high temperature (UHT) milk, dry fruits, chocolates, biscuits and cookies, cornflakes, soya milk drinks, tomato ketchup, jams, ice cream, cakes along with drinking water bottles. The GST rate on all these food items has been cut to 5 per cent from 12 per cent or 18 per cent, while that for UHT milk will be nil. For drinking water bottles, the GST Council has recommended a cut in rate to 5 per cent from 18 per cent for mineral water or aerated water, not containing sugar or other sweetening material, and from 12 per cent for drinking water packed in 20 litre bottles.
