Govt is serious about anti profiteering provisions under GST

CBEC Announced Today:

"Telecom services presently attract Service Tax of 14% along with Swachh Bharat Cess (SBC) of 0.5% and Krishi Kalyan Cess (KKC) of 0.5%. Service Tax is a pure value added tax, the above cesses are not. No credit of SBC is available; credit of KKC is set off against KKC. 

As against the above, telecom services will attract GST of 18% in GST regime, which is a pure value added tax with full ITC of inputs. Under GST, telecom service providers can avail IGST credit on domestic/imported goods vis-a-vis credit of SAD not being available now. Telcos are required to re-work their costing and re-jig the prices & to pass on increased credit to the customers by lowering their costs."

Message is Clear. Govt is serious about anti profiteering provisions under GST. Companies going to gain big on account of full availability of Input Tax Credit will be forced to share the benefits with their customers by reducing their cost. If Some Tax Payers are under impression that this clause will also be just a formality like CSR (Corporate Social Responsibility), need to think again! Still have time to re-set their pricing strategy. Govt knows how cost of all essential goods and services increased in other countries post implementation of GST. So, Won't take any risk. Thanks.