Treading GST Path - XLIV - Understanding Anti-profiteering

Well! To understand whether the prices have come down due to GST is not so simple. Take the case where under the pre GST, there were not taxes applicable on either on the inputs or the outputs, but post GST, there is a tax on inputs and outputs. Ofcourse, ITC is available but the lead time for utilisation of the ITC is 6 months due to the manufacturing cycle of the product. Now, due to GST the Supplier has an interest cost due to blockage of working capital under the GST regime which was not there during the pre GST period. I think this interest cost due to the GST should also be considered while determining the price in the post GST period. Similarly, there could be many GST specific costs which a supplier may have incurred due to introduction of GST. Anti profiteering should be considered after factoring those additional costs as well.

Shibu John 05/06/2018