New Delhi: Finance Secretary Hasmukh Adhia has said it is mandatory for the big companies to pass on the benefit of reduced Goods and Services Tax (GST) to the end-consumer or else the government will act against them.
"We have now reduced taxes of bigger items. If we see any anomaly we will not get hold of the small retailers, we will catch the bigger companies," Adhia told DD News on Saturday.
The Goods and Services Tax Council during its last meeting on November 10 has lowered tax rates on 178 items from 28 percent to 18 percent. Most goods under the 28 percent slab earlier, except demerit goods, will now be taxed lower.
Regarding government`s demonetisation drive, Adhia said it was meant to cleanse the system and do away with black money.
"Demonetisation was meant to cleanse the system and do away with black money."
He further said people had lot of cash stashed away in the houses, demonetisation has brought those hidden cash into the main banking channel.
"People had lot of cash stashed away in their houses with which they bought only luxury items. Demonetisation has brought those money into banking channel and it will be now used for lending to people," he added.
The Indian government on November 8, 2016 started the demonetisation drive by banning high denomination Rs 500 and Rs 1,000 currency notes.