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Arvind P Datar & G Natarajan dates the an, reducion in we rate… tax should be passed on to consumers by ‘commensurate reduction in prices’. But this is not always the case as, paradoxically, reduced tax does not recesse city pos ultie When OST or a final pract air conditioner-falls, the buyer should get a lower price. The difficulty arises when the tax is reduced on inputs used in the manufacture of dutiable final products. For example, GST was reduced from 28% to 18% ce ment, ilmente taxation structura Accounting standards require that taxes paid on inputs do not form part of thefinalunduct’s cost if there input
by Sekar Reporter · Published November 21, 2025