Profiteering worries cast cloud over GST cuts
NEWS Profiteering worries cast cloud over GST cuts Gireesh Chandra Prasad 4 min read 04 Aug 2025, 05:30 AM IST The caution stems from the previous experience of some real estate, multiplex and consumer goods companies raising prices when taxes were cut, denying benefit to the consumer. (PTI) SUMMARY Many companies were investigated for profiteering during tax cuts earlier. This has ignited worries that the practice may return if the GST Council goes for fresh tax cuts.
What's the solution? Gift this article The spectre of profiteering is holding back a new round of tax cuts, as the federal council for indirect taxes fears businesses will pocket the savings instead of passing them on.
At stake is lower taxes on insurance premiums and an end to the 12% GST slab, two proposals that have gained broad support in recent times. The caution stems from the previous experience of some real estate, multiplex and consumer goods companies raising prices when taxes were cut, denying benefit to the consumer. The national anti-profiteering body formed as an interim measure to check such practices was wound up in November 2022, and no suitable alternative is in place yet.
