The much-anticipated overhaul of the Goods and Services Tax (GST) was expected to bring relief to consumers. However, a nationwide survey conducted by Local Circles indicates that the benefits have not significantly trickled down.
In the first week following the revised GST rates, less than 30% of respondents reported any benefit when purchasing packaged food items or medicines. Specifically, only 10% of consumers confirmed receiving the full benefit on packaged foods, while 20% said they experienced partial reductions. The pattern was similar for medicines, with just one in 10 consumers receiving the full benefit.
Electronics, Appliances Show Mixed Results
The survey, which gathered over 78,000 responses from 27,000 consumers across 332 districts, also revealed a mixed picture in categories like white goods, electrical appliances, and consumer electronics. Here, 30% of consumers confirmed receiving the full benefit, while another 30% reported partial savings. This suggests that a large segment of retailers has yet to pass on the GST rate cuts fully to end buyers.
Retailers Cite Old Stock and Pricing Issues
One of the primary reasons cited for the delay in price reduction is the presence of pre-GST priced stock on retail shelves. Many retailers continue to sell these items at older rates, with some placing notices informing customers that the revised prices will be adjusted at the billing counter. This transition challenge means consumers might have to wait longer to feel the full effect of the tax reduction.
Automobile Sector Sees Quickest Pass-Through
The automobile industry emerged as the clear exception. According to the survey, seven in 10 vehicle buyers confirmed they received the complete benefit of the GST rate cut, while 20% said they enjoyed partial benefits. The rapid price adjustment in this sector highlights how larger-ticket items with quicker inventory turnover can more swiftly reflect tax changes.
Conclusion: Relief Still a Work in Progress
While the GST overhaul was designed to make goods more affordable, the survey shows that most consumers haven’t yet seen significant price drops, particularly for everyday essentials. As older stock clears and retailers recalibrate pricing strategies, the real benefits of GST cuts may become more visible in the coming weeks.
