Tax Department keeping close eye on prices, post GST rollout

NEW DELHI: Tax departments across the country are keeping a close watch on prices following the July 1 rollout of the goods and services tax (GST).

Makers of consumer goods and handsets, as well as some restaurant chains, have all got calls from local tax authorities seeking details of invoices before and after GST as part of the exercise.

“In order to study prices under the GST, you are requested to send selling price of your top commodity… in the relevant format,” r elevant format,” read a notice sent to a company by local tax authorities in Tamil Nadu.

 

Similar messages have been sent to companies in states such as Maharashtra, Andhra Pradesh and Puducherry. Some have even got phone calls seeking price information, said a person aware of the development.

The government is keen to prevent any spike in inflation due to GST as happened in some countries that implemented the levy. India has opted for a two-pronged solution to make sure this doesn’t happen — a multi-rate GST structure and a proposed anti-profiteering agency.

The GST Council has tried to ensure that items are placed in slabs that are closest to the rate at which they were taxed earlier. The levy has four tiers — 5 per cent, 12 per cent, 18 per cent and 28 per cent.

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