New tax rates effective, customers experience mixed response

Mumbai Nov 16: Some of the crucial decisions which were taken by the GST council last week has come into effect from yesterday.The council in a meeting last week has reduced the tax rates of 178 items and also reduced the tax rates on restaurants.

However many of the restaurants have not passed on the benefit to the customers as they have increased the prices of food items served to cover up the losses as input tax credit was not available.

However, some restaurants have passed on the tax benefits and have reduced the prices and customers were happy.

Some restaurants said that they would take a call in coming days after recalculating the loss because of loss of Input tax credit.

However, the experts said that the customers would be benefitted as the input tax claimed would be restaurants is low.

GOODS prices stable

Many companies have not reduced the MRP of the goods for which tax rates have been decreased and they cited that they would revise the MRP in coming days based on the stock availability and manufacturing cycle.

However, some companies have announced that they would pass on the benefits either by increasing the size or reducing the prices.

The Government has asked the companies to print the revised MRP as well as old MRP so that consumers can know how much benefit they have gained.