GST 2.0: Over Three-Fourths Of Consumers Want Mechanism To Ensure Retailers Pass Down Benefits

Up to 78% of consumers stated that the benefits of the recent rationalisation of the goods and services tax should be passed on to consumers from retailers, according to a survey by Local Circles published on Friday.

According to the survey, the remaining 13% stated that this is the responsibility of the government and not brands, while 5% indicated that it should not be done at all, with the remaining 4% not giving a clear answer.

LocalCircles also shared its survey conducted for 2018-19, right after the first round of GST rationalisation took place, and found out that 18% of respondents believed that the benefits of this rationalisation were not passed down to them.

In comparison, 50% of the respondents said that manufacturers and brands as well as distributors and retailers did not reduce their maximum retail price or pass along discounts to them.

Out of this 50%, up to 26% reported that manufacturers did not reduce their MRPs, 26% said that the distributors did not pass the benefits to retailers, and 9% reported not getting discounts from retailers. Up to 32% said they don't remember or they can't say.

Around 9% indicated that they received benefits from reduced MRPs while another 9% said they received discounts from retailers.

"Given that the anti-profiteering authority is no longer in existence and no mandate has been issued under the Consumer Protection Act 2019 to classify not passing benefits as unfair trade practice, the reliance literally is on brands now to ensure the reduced rates are passed by the retailers to the end consumers," the survey said.

The survey got over 36,000 responses from consumers who were located in more than 319 districts of the country. 61% of the respondents were men, while 39% of them were women. 44% of respondents were from tier 1, 24% from tier 2 and 32% respondents were from tier 3, 4, 5 and rural districts, the survey said.