Team Goemkarponn
PANAJI: With revised Goods and Services Tax (GST) rates set to take effect nationwide from Monday, the Goa government has announced strict action against traders who fail to pass on the tax benefits to customers. Officials from the State GST and Commercial Tax Department have been instructed to carry out surprise inspections across retail outlets to check profiteering.
The Finance Department has already issued a notification and advisory, in line with the Union government’s directive, to ease the transition. Commissioner of Tax S S Gill said that all traders and companies must comply. “Everyone will have to adhere to it,” he stressed.
“We will act against those who do not reduce prices of essentials despite the rate cuts. At the same time, guidance will be provided to help shopkeepers and retailers implement the changes,” the officer said.
However, the government has acknowledged that the transition could take time. Many retailers have complained they are yet to receive revised price lists or updated MRPs from companies, leaving them uncertain about how to sell existing stock.
To address this, the Department of Consumer Affairs has allowed manufacturers, packers, and importers to affix new price stickers on goods manufactured before September 22, while keeping the original MRP visible. Old packaging can be used until March 31, 2026, or until stocks are exhausted.
“This means certain products may display two MRPs—the original and the revised GST-adjusted price,” an officer explained, noting that stickers, stamps, or digital printing can be used to update prices. “Such a system could cause temporary confusion for both sellers and buyers.”
Officials will monitor whether businesses are genuinely lowering prices. “Government teams will purchase products where reductions are mandated, and action will follow if prices are not cut as required,” the officer said.
The new GST slabs include 5% and 18%, with a steep 40% for sin goods. While households will benefit from reduced prices on several essentials and services, lifestyle and luxury goods will become costlier.
For instance, air-conditioners are now cheaper by up to ₹4,500 and dishwashers by as much as ₹8,000. Car prices in Goa are also set to fall sharply—anywhere from ₹65,000 to ₹8.9 lakh, depending on the model. Footwear up to ₹2,500 per pair will attract just 5% GST, down from 12%, while garments priced above ₹2,500 will see tax rise to 18%.
Meanwhile, the anticipation of tax cuts has already impacted consumer behaviour. A senior official from a nationalized bank said not a single car loan has been processed this September, as buyers are waiting for Monday’s rollout. “Earlier we would get one or two car loan applications every week. This month, there have been none,” the officer said.
Manufacturers and retailers are now eyeing a surge in demand for automobiles, appliances, and electronics during the upcoming festive season, beginning with Navratri.
