GST anti profiteering clause puts FMCG firms in a fix
Thursday, October 25, 2018, 8:39 AM
With input costs remaining high, manufacturers of consumer packaged goods have had little choice so far but to increase prices and protect their margins. But with anti-profiteering provisions of the goods and services tax now in place, increasing prices has become tricky. This clause requires companies to pass on the benefit of reduced tax rates by slashing their prices, bringing an element of ambiguity.