This is with reference to the article 'GST to benefit Indian consumers' that appeared in January 15, 2016 issue. GST, no doubt, is revolutionary in Indian tax regime. Combination of various taxes into one will definitely reduce the burden of Indian industry and business.
Absorption of taxes into next level will reduce tax burden and businessmen will find rates comparative and competitive for export also. It is good for industry but I have doubts whether end users will be able to get any benefits of GST.
We see a vast difference in wholesale and retail prices. In the modern era of mall culture and big retailers, we find that they pocket the huge profits to keep themselves alive to feed huge investment and operational cost resulting in virtually no benefits for endusers.
Tie-up of brands by big wigs also results in their profits rather benefits to end-users. The cartel nexus should end so that real benefits of GST passed to end-users.
(This letter published in Business Economics on January 31, 2016)