Srinagar: With Goods and Services tax (GST) coming into force in the country fromJuly 1, the centre has warned companies, including MNCs, from hiking prices as it will be monitored under the anti-profiteering law.
“We have an anti-profiteering law, the machinery may come subsequently, but they (companies) will be called in anytime for any action they take… after today or even before that in the anticipation of rates going down they have increased the rates, they will be called and asked to explain the move,”Revenue secretary Hasmukh Adhia told reports here today.
Mr Adhia asked the big corporate to not indulge in such activities and be honest and pass down the benefits of GST to the consumers. “We will try to operationalize the mechanism as soon as possible. But even if that is setup in three months, it can ask companies to produce its costing and balance sheets,” he said.
“Say suppose, if a company has increased 3 per cent rates in the last 3 month, it can be asked to explain itself,” he added.
Meanwhile, Mr Adhia asserted that the effective tax rate will be lower than the headline rate as companies will get input tax credit for goods and services.
He said players like Flipkart, Snapdeal will have to deduct 1 per cent TCS (tax collected at source) while making payments to suppliers.
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