Quick Summary
The Centre has cautioned traders that failing to pass on the benefits of GST 2.0 rate cuts to customers could invite penalties and punishment under the Weights and Measures Act. Earlier this month, the government unveiled GST 2.0 as a "Diwali gift" aimed at lowering prices for consumers. However, authorities have noted that some traders may try to retain the benefits of reduced tax rates instead of passing them on to customers. Anti-Profiteering Provisions in Focus While anti-profiteering pro
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FAQ :
GST 2.0 is a set of rate cuts recently introduced by the government, intended as a 'Diwali gift' to lower prices for consumers.
Traders who fail to pass on the benefits of GST 2.0 rate cuts to customers could face penalties and punishment under the Weights and Measures Act.
Yes, although anti-profiteering provisions under Section 171 of the GST Act are inactive since April 1, 2025, the Centre can reactivate them anytime through a notification.
If profiteering is detected, GST officials can conduct full audits and verification of traders' accounts and documents.
For example, an item costing Rs 100 at 12% GST (base price Rs 89.29) moving to 5% GST becomes Rs 93.75, a reduction of Rs 6.25, not a full 7%.
The government's clear intention is that the GST 2.0 reforms should directly benefit consumers by lowering prices.
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