The Delhi High Court has said that whenever the GST Council reduces the tax rates on a product, the ultimate benefit must flow directly to consumers through a corresponding reduction in the product’s price, according to a report by LiveLaw. A division bench of Justices Prathiba M Singh and Shail Jain emphasized that manufacturers cannot bypass this mandate by altering the product’s quantity while continuing to charge the same MRP.

“The benefits extended to the consumer are also of utmost importance. The purpose of reduction in GST is to make products and services more cost effective for the consumers. The said purpose would be defeated if the price is kept the same and some unknown quantity is increased in the product, even without the consumer requesting for the increased quantity produc

See Full Page