Are the reduced GST rates on commodities retrospective

[Abhishek Panicker]

I would like the experts to kindly inform whether -

The tax rates on commodities which the GST council has been reducing in almost every meeting is applicable retrospectively.

This is because if it is so, then the prices of these goods should see a downward revision which necessarily does not seem to be the reality. And if this is the reality, then the Anti-Profiteering mechanism should come into play. But is the department doing so?

Moreover, even if the reduced rates are not retrospective, then the goods which are packaged prior to this reduction exhibit the prices which were arrived at on the basis of the higher taxation rates.

How will the buyer come to know if he has been extended the benefit of the reduced tax rates?

GST has become a mess as far as tax rates are concerned. Why cannot we go back to the old system of Tariff classification and prescribing tax rates rather than specifying the 'commodities' and imposing tax rates.

I fear that every GST council meeting there were would be a demand from so and so association of manufacturers to reduce the tax rates and we would be having a tax rate correction the year around.

How can then one call this as One Nation, One tax?

God bless us all.

AI Summary

Discussion on GST Rate Reductions: Not Retrospective, Raises Concerns Over Pricing and Anti-Profiteering Measures A participant in a discussion forum inquired whether the reduced GST rates on commodities apply retrospectively, questioning the lack of price reductions and the role of the Anti-Profiteering mechanism. The concern was raised about how buyers can verify if they benefit from reduced rates, especially on goods packaged before rate reductions. Responses from three contributors clarified that GST rate changes are not retrospective, and any retrospective application would necessitate refunds. The discussion highlighted dissatisfaction with the current GST system and a preference for the previous tariff classification method.