Prices of 2,500 goods in GST regime |
As part of its efforts to keep prices under check after the introduction of the goods and services tax (GST), India`s finance ministry is working out the possible price of 2,000-2,500 commonly used goods and services after the launch of the new regime and comparing them with current prices. The data is expected to be released later this monthin June and will cover major cities. The effort is part of the outreach to ensure that businesses don`t take advantage of the new regime to raise prices, citing higher incidence. A spike in prices of major commodities would be tough to handle politically too, prompting the government to undertake a detailed analysis. Already, GST rates have be en fixed in a way that prices do not jump for major commodities and services. As a result, food products have been protected, while soaps and other consumer goods have actually seen a lower levy. Within product categories too, a distinction has been made, which some economists have criticised. But that has not stopped the GST Council -comprising the Union finance minister and state FMs -to opt for multiple slabs for hotels and restaurants. Similarly, it is expected to have separate rates for cheaper biscuits and footwear as opposed to the more expensive ones.
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