GST-2.0, Government sought a list of new prices of goods: told companies- Show new and old prices after GST cut on shops, showrooms

Earlier, the government had allowed companies to change the maximum retail prize (MRP) of their old remaining goods.

After the announcement of the new GST rates, now the central government has sought a list of a new estimated price of their products from companies. According to the report of the Economic Times, the government will also upload the list of new and old prices on the official website of GST.

On Wednesday, the Central Board of Indirect Taxes and Customs (CBIC) held a meeting with people associated with industry and business. In this meeting, instructions were given to implement the deduction in GST properly. Apart from this, the government has also asked companies to show both old and new prices at their shops and dealerships so that customers do not have any problem.

In fact, the government wants to ensure that the benefit of GST deduction is fully reached the customers and companies do not take advantage of it. After the implementation of GST in 2017, some companies did not give the benefit of tax deduction to customers, after which the ‘National Anti-Profiting Authority’ imposed a fine on them.

The government allowed companies to change the MRP of old stock

The government has allowed companies to change the maximum retail prize (MRP) of its old remaining goods (unusual stock) before the new GST rates being implemented from 22 September. Manufacturers, packers and importers will now be able to put new prices on old stock with stamps, stickers or online printing.

The Consumer Affair Department of India issued an order on Tuesday stating that the permission would remain in force till 31 December 2025 or till the old stock is over. With new prices, companies will need to see old MRP.

Now only two slabs instead of 4 in GST

Now only two slabs instead of 4 of GST will be 5% and 18%. This will also make common needs such as soap, AC, car with shampoo. It was decided in the 56th meeting of the GST Council. Finance Minister Nirmala Sitharaman gave this information on 3 September.

Finance Minister Sitharaman said that many food items including milk, roti, paratha, chhena will be GST free. At the same time, individual health and life insurance will also not be taxed. 33 Life -saving medicines, rare diseases and medicines for serious diseases will also be tax free.

Luxury items and tobacco products will now be 40% GST instead of 28%. Medium and large cars, motorcycles with engine more than 350cc will come to this slab.

What will be the benefit of the common man from these changes?

These changes will reduce the burden on your pocket. Everyday items, food items and small vehicles will become cheaper. 18% tax on health insurance for individual, family, and elderly has been removed. This will make it cheaper to take insurance and more people will be able to take it.

• If the tax on cement is 28% to 18%, the cost of building or repairing will be slightly lower.
• Luggage like TV, air conditioner will also come under 28% to 18% tax, that is, they will also be cheap.
• 33 essential medicines, especially cancer and serious diseases, will now be tax-free.
• Small cars and motorcycles up to 350cc will now come under 18% tax instead of 28%.
• Tax on auto parts and three-wheelers also ranged from 28% to 18%, which will make them cheap.

Example: Hair oil

First: Suppose a hair oil bottle was priced at Rs 100 and if it looked 18% GST, then the calculation would be something like this …

GST = 100 × 18% = 18 rupees

Total price = 100 + 18 = 118 rupees

Now: The new rate is 5%.

GST = 100 × 5% = 5 rupees

Total price = 100 + 5 = 105 rupees

Benefit: The first bottle available for Rs 118 will now be available for Rs 105.

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