GST rate cuts to test efficiency of anti-profiteering mechanism

The efficiency of India’s anti-profiteering mechanism is on test as wide-ranging GST rate cuts announced earlier this month percolate into the Indian economy. On 21 July, the goods and services tax (GST) on washing machines, small televisions and air conditioners, as well as other goods, was reduced from 28% to 18%. However, it remains to be seen whether manufacturers pass on the full benefit…