The Indian government's recent GST reduction on milk products has failed to translate into lower consumer prices across West Bengal. Despite dealers purchasing inventory under the revised tax structure, retail costs remain unchanged for buyers.
Biplob Majumdar, who operates a Bangla Dairy outlet in Sodepur within North 24 Parganas district, confirmed that wholesale acquisition costs decreased while customer pricing stayed constant. The dealer explained that GST exemptions at the retail level mean no tax adjustments pass through to final purchasers. This gap between wholesale savings and consumer benefits highlights implementation challenges in the new tax framework.
The government launched GST 2.0 on September 22, condensing four previous tax brackets into two simplified rates of 5 percent and 18 percent. This represents the most significant indirect tax overhaul since GST's 2017 introduction. Prime Minister Narendra Modi designed these changes to stimulate household spending, which comprises more than half of India's economic output, particularly during the approaching festive season when consumer purchases typically surge.
Biplob Majumdar, who operates a Bangla Dairy outlet in Sodepur within North 24 Parganas district, confirmed that wholesale acquisition costs decreased while customer pricing stayed constant. The dealer explained that GST exemptions at the retail level mean no tax adjustments pass through to final purchasers. This gap between wholesale savings and consumer benefits highlights implementation challenges in the new tax framework.
The government launched GST 2.0 on September 22, condensing four previous tax brackets into two simplified rates of 5 percent and 18 percent. This represents the most significant indirect tax overhaul since GST's 2017 introduction. Prime Minister Narendra Modi designed these changes to stimulate household spending, which comprises more than half of India's economic output, particularly during the approaching festive season when consumer purchases typically surge.
