Traders to face action for not passing GST benefits to consumers: Officials

Tirupati: The joint commissioner (state tax) of Chittoor, A Ravindranath Reddy, held a meeting with medical and drug wholesalers, retailers, and distributors at the Tirupati Commercial Taxes Complex on Friday. The meeting focused on the recent GST rate reductions and the need for composition taxpayers to shift to the regular taxpayer category.

The meeting was held following a news story published in The Hans India on November 26, 2025, titled, ‘GST relief fails to reach consumers as traders flout new tax rates’, in which it was mentioned that many traders citing excuses like old stock among other reasons to charge prices before the GST rate cut.

They have been showing the old MRP as zero and showing that rate as the new MRP to deceive the consumers. Taking a serious note of this, the Joint Commissioner held an interactive meeting with the traders.

During the interaction, dealers agreed to clearly show the benefits of the GST rate cuts on every invoice and to help create awareness among the public. They also agreed to shift composition dealers to the regular category, pay profession tax, complete required registrations, and file all statutory returns on time.

Officials informed the participants that as part of the GST 2.0 implementation process, strict action would be taken against taxpayers who fail to pass on GST benefits to consumers.

Andhra Pradesh Chemists and Druggists Association state president Venkataratnam, state organising secretary Subbarama Gupta, Narasimha Reddy, Kumar, Sasi, Siva and several other taxpayers from the medical and drug sector attended the meet. Assistant commissioners from Tirupati were also present.