Lucknow, Sept. 22 -- The reduction of Goods and Services Tax (GST) rates is expected to bring significant relief to consumers but Uttar Pradesh officials say that ensuring that the benefits actually reach consumers will be challenging, with possible disputes between retailers and customers over pricing.
Officials are preparing measures to ensure that the news GST rates, which took effect today, are implemented smoothly. A senior state government official said that consumers often assume a direct price drop equal to the tax cut- for example, from 18 percent to 5 percent. However, this is not the case because transportation costs, dealer margins and other factors affect the final price. This gap between expectations and actual prices could l...