BIZ-ANTI PROFITEERING

Cos allowed to pass on volume benefit to consumers for GST cut
    Kolkata, Mar 15 (PTI) The National Anti-Profiteering
Authority (NAA) Friday said companies are free to offer
volume benefit or price reduction to consumers, in the wake of
rationalisation of GST rates.
    To evaluate cases of GST benefits, the NAA has decided
to look into three yardsticks - proportionate grammage
increase (volume) in products, timeline of the passing on the
benefit, and additional benefits offered by a firm.
    NAA (GST) Chairman B N Sharma said this on the
sidelines of a session by the Merchants' Chamber of Commerce
and Industry here.
    Citing an example, he said, passing on price benefits
to consumers for goods sold in small sachets might not be
feasible and practical.
    Sharma, however, did not explain whether the same can
be replicated in products of higher volume-packs or in sectors
other than FMCG.
    He declined to take media queries.
    "Allowing volume benefit will have a dual advantage to
companies. This will help achieve higher turnover and
profits," said Dipankar Chatterji, partner of chartered
accountancy firm L B Jha.
    Sharma also said companies have to pass on GST
benefits in all the SKUs.
    Meanwhile, in case of realty sector, the NAA was
waiting for the March 19 GST Council meeting which is
expected to come out with greater clarity about implementing
the GST benefits it announced earlier. PTI BSM
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