GST rate cuts lose impact as rising commodity prices eat into consumer savings
- One year after GST rate cuts, rising commodity and input costs have eroded much of the savings for consumers.
- Automobiles saw the clearest benefit, with retail sales rising 20% to 29 million units in 11 months.
- FMCG companies initially cut prices by about 10%, but later raised them 6–7% as raw-material and energy costs rose.
- Apparel saw mixed results, while mid-market hotels faced margin pressure after GST changes removed input-tax credit benefits.
Source: timesofindia.indiatimes.com
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