Companies may pass on GST benefits to consumers by increasing grammage

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The National Anti-Profiteering Authority (NAA) Friday said companies are free to offer volume benefit or price reduction to consumers, in the wake of rationalisation of GST rates. To evaluate cases of GST benefits, the NAA has decided to look into three yardsticks – proportionate grammage increase (volume) in products, timeline of the passing on the benefit, and additional benefits offered by a firm.

NAA (GST) Chairman B N Sharma said this on the sidelines of a session by the Merchants’ Chamber of Commerce and Industry here. Citing an example, he said, passing on price benefits to consumers for goods sold in small sachets might not be feasible and practical. Sharma, however, did not explain whether the same can be replicated in products of higher volume-packs or in sectors other than FMCG.

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