Consumer Goods Cos Stock Up on Legal Advice

Consumer goods makers are hiring law firms for implementing the revised goods and services tax (GST) norms and taking pre-emptive measures to safeguard against any inadvertent anti-profiteering complications and allegations, said executives at companies and legal firms. The development comes amid buzz that the government is considering re-invoking anti-profiteering provisions, though only in the short term, to ensure companies pass on tax benefits to consumers. “While legal provisions require any benefits to be passed on by Way of commensurate reduction in prices, it is not practical to do so for all commodities, on account of package size, low retail price per package, and stock in transit, etc,” said Manish Mishra, partner and head of practice, indirect tax, JSA Advocates & Solicitors. Read more