How can the government ensure that the benefits of GST are actually reaching the common people?

The Goods and Services Tax (GST) was introduced to simplify the indirect tax system and reduce the cascading effect of taxes, ideally resulting in lower prices for consumers. However, ensuring that these benefits actually reach the common people requires active monitoring and enforcement by the government. Several practical steps and mechanisms can be adopted to achieve this.

• Anti-Profiteering Measures: The National Anti-Profiteering Authority (NAA) was set up to ensure that businesses pass on the benefits of input tax credits and reduced tax rates to consumers. The authority can investigate complaints and order refunds or penalties.
• Strict Monitoring and Audits: Regular audits and inspections of businesses can be conducted to check whether the reduction in tax rates is reflected in the final prices of goods and services.
• Public Awareness Campaigns: Educating consumers about GST rate reductions empowers them to demand lower prices and report violations.
• Grievance Redressal Mechanisms: Setting up easy-to-access platforms (online portals, helplines) where consumers can lodge complaints if they notice that GST benefits are not being passed on.
• Price Monitoring Cells: Establishing dedicated cells to track the prices of essential goods and services before and after GST rate changes to identify discrepancies.
• Collaboration with Consumer Forums: Working with consumer rights organizations to monitor market prices and create pressure for compliance.
• Penalties and Deterrence: Imposing strict penalties on businesses found guilty of not passing on GST benefits to act as a deterrent.

Challenges:
• Complex Supply Chains: It can be difficult to track price changes across complex supply chains and multiple intermediaries.
• Lack of Consumer Awareness: Many consumers may not be aware of rate changes or their rights under GST.
• Enforcement Capacity: Limited manpower and resources can hamper the government’s ability to monitor all businesses effectively.
• Price Fluctuations Due to Other Factors: Prices may change due to reasons other than GST, making it hard to attribute changes solely to tax reforms.